Amid global economic uncertainty and evolving enterprise priorities, India’s technology industry continues to demonstrate resilience, with revenue projected to reach $315 billion in FY26, according to the Annual Strategic Review 2026 released by NASSCOM. The sector is expected to grow 6.1% year-on-year, up from $297 billion recorded in FY25.
The report highlights a shift in enterprise spending, with organisations focusing more on measurable return on investment, productivity improvements and outcome-driven transformation rather than experimental technology adoption.
Exports are projected to cross $246 billion in FY26, marking a 5.6% annual increase, while domestic demand grew 7.9% as Indian enterprises continued steady technology adoption despite global macroeconomic pressures. Faster growth in APAC and the Middle East also helped companies diversify revenue streams beyond mature markets.
Artificial intelligence has emerged as a significant growth driver. AI-led revenues are estimated between $10–12 billion in FY26, contributing around 5–6% of company revenues on average. The industry is moving from pilot projects to scaled, domain-focused AI deployments aligned with business outcomes.
The sector added nearly 135,000 employees during FY26, taking total direct employment to about 6 million, reflecting a 2.3% increase. Despite automation concerns, hiring remains positive. More than 2 million professionals were upskilled in AI, including 200,000–300,000 trained in advanced AI capabilities.
Sindhu Gangadharan, Chairperson, NASSCOM, said, “AI is accelerating productivity and changing the nature of work, but it is also expanding the opportunity frontier. As AI gets embedded across functions, we will see roles redesigned around outcomes, deeper specialisation, and significantly higher AI fluency. The industry’s focus is on building ‘Human + AI’ teams, investing in continuous skilling, and converting efficiency gains into growth, creating new jobs and new career pathways even as delivery becomes more agile and more resilient.”
The report describes the year as a turning point, with “Human + AI” teams becoming the dominant delivery model. Talent strategies are shifting toward capability-first hiring, while new roles such as AI orchestrators and human-AI managers are expected to grow rapidly.
Engineering Research & Development and BPM remain key growth engines, with companies embedding intelligence into products and moving toward end-to-end mandates. Nearly 70% of Global Capability Centres now have defined AI roadmaps, evolving toward strategic ownership models.
Rajesh Nambiar, President, NASSCOM, said, “The past year has been a reset for the global environment, but technology demand has remained resilient; shifting decisively toward productivity, measurable ROI and scaled AI deployments.”
The Global End User CXO Survey further shows strong optimism, with 86% of buyers expecting stable or higher demand in CY26 and about 90% planning increased AI spending.
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