India’s technology sector — including IT services, software products, engineering services, and related areas — is projected to generate about $315 billion in revenue in the fiscal year ending March 31, 2026, according to the industry body Nasscom’s latest strategic review. This reflects a 6.1 % year-on-year growth from the previous fiscal year, marking a modest acceleration amid global tech demand and broader enterprise spending on digital transformation.
Artificial intelligence (AI) is emerging as an increasingly meaningful revenue stream within that total. Nasscom estimates that AI-related services currently account for roughly $10 billion–$12 billion of the industry’s revenues, although this figure still represents a relatively small share of the overall sector. Growth in AI revenues is being driven by large enterprises moving beyond pilot projects toward scaled AI deployments.
Major Indian IT companies have already begun disclosing parts of their AI businesses: for example, Tata Consultancy Services (TCS) reports an annualized AI services run rate of about $1.8 billion, while firms like Infosys and HCLTech are seeing AI contribute a growing portion of their revenue. However, AI still represents a nascent part of the overall industry’s business mix, with expectations that its contribution will rise significantly in coming years as adoption expands.
On the employment front, the tech sector remains a net job creator, adding about 135,000 new roles in FY26 and bringing total workforce numbers to nearly 5.95 million people. Nasscom notes that hiring growth has plateaued somewhat, partly due to the evolving nature of work in an era of increased automation and AI integration.
