India’s Technology Sector Poised To Reach $315 Billion In FY26 On AI-Led Expansion

India’s technology industry is set to attain revenues of $315 billion in FY26, registering a 6.1 per cent year-on-year increase, according to a report released on Tuesday by the NASSCOM.

The findings underscore a pivotal year for the sector as artificial intelligence transitioned from pilot initiatives to enterprise-wide deployment.

The industry navigated global economic headwinds and a recalibration in corporate expenditure. Yet demand for digital and technology services remained resilient.

Enterprises continued to prioritise digital modernisation despite macroeconomic volatility.

The report states that AI has fundamentally altered operating models. Organisations now embed AI into core workflows rather than treat it as an experimental add-on.

Clients demand quantifiable returns, operational efficiency and outcome-oriented transformation. This shift has redefined technology spending priorities across global markets.

AI-specific revenues alone surpassed an estimated $10–12 billion in FY26. Companies now allocate ring-fenced budgets for AI implementation.

They deploy advanced systems at scale to enhance productivity, optimise costs and strengthen competitiveness.

Workforce Evolution Accelerates

The sector expanded its workforce by 2.3 per cent during the year, even as automation gained momentum.

The industry trained over two million professionals in AI-related competencies. Of these, between 200,000 and 300,000 acquired advanced AI expertise.

Firms increasingly cultivate “Human + AI” operating structures. Professionals collaborate directly with intelligent systems to amplify efficiency and deliver superior outcomes.

This hybrid model defines the next phase of service delivery.

Sindhu Gangadharan, Chairperson of NASSCOM, asserted that AI enhances productivity while generating fresh career pathways.

She emphasised that enterprises are redesigning roles to prioritise outcomes, deeper specialisation and advanced AI proficiency.

Continuous learning remains central to converting efficiency gains into sustainable expansion and employment growth.

Rajesh Nambiar, President of NASSCOM, observed that although global growth has moderated, technology expenditure now centres on productivity-driven and AI-led transformation strategies.

The conclusions draw support from the NASSCOM Global End User CXO Survey, which collated perspectives from international business leaders.

The survey reveals that 86 per cent of CXOs anticipate stable or rising demand in calendar year 2026. More than half expect growth compared with the preceding year.

India’s technology industry thus reinforces its strategic geopolitical relevance as AI adoption reshapes global enterprise dynamics.

 

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