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India's Tech Industry to Hit $315B in FY26, AI Drives 6.1% Growth

India's technology industry is projected to achieve $315 billion in revenue in FY26, reflecting a 6.1% growth. This expansion is significantly driven by the transition of AI from experimentation to large-scale business deployment, with AI revenue alone estimated at $10-12 billion. The sector continues to create jobs, with the workforce growing by 2.3% and over two million professionals receiving AI training. Industry leaders emphasize that AI is fostering new career opportunities and a shift towards "Human + AI" teams focused on productivity and outcomes.

Key Points: India Tech Hits $315B in FY26, AI Revenue Crosses $10B

  • AI revenue estimated at $10-12B in FY26
  • Over 2M professionals trained in AI skills
  • Tech workforce grew by 2.3%
  • 86% of CXOs expect stable or increased demand
2 min read

India's tech industry expected to hit $315 billion in FY26, driven by AI transformation

India's tech industry revenue to reach $315B in FY26 with 6.1% growth, driven by AI transformation and over 2M professionals trained in AI skills.

"Companies are investing heavily in continuous learning so that efficiency gains can be converted into growth and job creation - Sindhu Gangadharan"

New Delhi, Feb 24

India's technology industry is expected to reach $315 billion in revenue in FY26 -- marking a 6.1 per cent growth over the previous year, a report said on Tuesday.

The data compiled by Nasscom showed the past year proved to be a turning point for the sector, as artificial intelligence (AI) moved from small-scale experiments to real business use, reshaping how companies operate and deliver services.

Despite global economic uncertainty and a broader reset in business spending, demand for technology services remained strong.

However, clients are now focusing more on measurable returns, higher efficiency and outcome-based transformation.

AI revenue alone is estimated to have crossed $10-12 billion in FY26, showing that companies are now deploying AI at scale and backing it with dedicated budgets.

The report highlighted that India's tech industry continued to create jobs even as automation and AI adoption increased.

The total workforce grew by 2.3 per cent during the year. More than two million professionals were trained in AI skills, including 200,000 to 300,000 in advanced AI capabilities.

The industry is increasingly building "Human + AI" teams, where employees work alongside AI tools to improve productivity and deliver better results.

Sindhu Gangadharan, Chairperson of Nasscom, said AI is not just improving efficiency but also creating new career opportunities.

She noted that as AI becomes part of everyday business functions, roles are being redesigned with greater focus on outcomes, deeper specialisation and higher AI skills.

"Companies are investing heavily in continuous learning so that efficiency gains can be converted into growth and job creation," Gangadharan added.

Rajesh Nambiar, President of Nasscom, said the global environment may have slowed, but technology spending has shifted toward productivity-focused and AI-led transformation.

The findings are supported by the Nasscom Global End User CXO Survey, which gathered insights from global business leaders.

The survey found that 86 per cent of CXOs expect business demand to remain stable or increase in calendar year 2026, with more than half anticipating growth over the previous year.

- IANS

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Reader Comments

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Rajesh N
While the growth numbers are impressive, I hope this translates into better job security and salaries for the mid-level professionals. There's a lot of anxiety about AI replacing jobs. The report says jobs are being created, but we need to see what kind of jobs—are they high-quality or just gig work?
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Aman W
$10-12 billion from AI alone! That's massive. It shows our tech industry is not just doing backend support anymore. We are leading in innovation. Proud moment for Indian IT. Jai Hind!
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Sarah B
Working with a global team, the demand for Indian tech talent in AI/ML is undeniable. The focus on "outcome-based transformation" mentioned in the article is key. Clients want results, not just hours billed. This maturity in the industry is good for everyone.
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Karthik V
The training number is good, but is it enough? With the pace of change, continuous learning is not a one-time program. Companies and employees both need to invest time and money. Hope the 'heavy investment' in learning that Nasscom mentions is real and reaches tier-2 cities as well.
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Meera T
As a recent graduate, this gives me hope! The emphasis on new career opportunities and specialisation is exactly what we were told. Time to double down on those AI certifications. 😊

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