India FY26 tech revenues grow 6.1%, says Nasscom
Despite geopolitics-inducing volatilities and changes in the landscape due to artificial intelligence platforms, the Indian tech sector is set to notch up a 6.1 per cent revenue growth in FY26 to $315 billion, Nasscom said on Tuesday.The industry’s lobby grouping said it was able to add jobs in FY26, with 1.35 lakh new additions to take the overall number of direct employees to 59.5 lakh as against 58.15 lakh at the end of FY25.
The industry had added 1.33 lakh jobs on a net basis in FY25, which is set to grow to 1.35 lakh in FY26. The growth in net additions at 2,000 is one of the slowest in many years.
Its President Rajesh Nambiar said there is a non-linearity between job growth at 2.3 per cent, and revenue growth at 6.1 per cent, but expressed satisfaction at the industry continuing to be a net employee generator.Nasscom said even as the tech landscape undergoes changes, it expects employee additions to continue going ahead as well.
The body said over 20 lakh of the 59.5 lakh employees have been upskilled in AI, which includes up to 3 lakh on advanced AI skills. In the strategic review of the ongoing fiscal year, Nasscom estimated the overall AI revenues at $10-12 billion in FY26, while Nambiar said not all companies report AI revenue.
The grouping also upwardly reviewed its FY25 revenue to $297 billion from the $282.6 billion estimate given in the review ahead of the end of the fiscal-year in February last year.
Speaking of the industry-wide trends and reasons behind the revenue growth in FY26, Nambiar acknowledged the headwinds witnessed by the industry but added that the “reality” is that technology spends continue to grow, albeit in newer areas, which were not traditional.
The core IT services revenues are expected to grow to $149 billion in FY26 from US 143 billion in FY25, while the same for business process management will increase to $59 billion from $55 billion last fiscal year, software products are set to go to $23 billion in FY26 from $21 billion in FY25.
Engineering, research and development revenues are set to grow to $63 billion from $59 billion, while the hardware companies’ revenues are set to grow to $21 billion from $19 billion in the last fiscal year.
In a shift from the past, where the US or North America used to deliver the higher growth for the industry, Nambiar said the Asia-Pacific and Middle East regions registered faster growth.
Interestingly, revenues from the domestic market are set to grow at 7.9 per cent in FY26, much faster than the world average.
From a sectoral perspective, healthcare, travel and transportation sectors are reporting faster growth, especially with the emergence of global capability centres in the country.
