Mumbai, February 24 Despite geopolitical volatilities and changes in the landscape due to artificial intelligence platforms, the Indian tech sector is set to achieve a 6.1 per cent revenue growth in FY26, reaching USD 315 billion, Nasscom said on Tuesday.
The industry's lobbying group said it was able to create jobs in FY26, with 1.35 lakh new additions, bringing the total number of direct employees to 59.5 lakh, compared to 58.15 lakh at the end of FY25.
The industry added 1.33 lakh jobs on a net basis in FY25, which is expected to grow to 1.35 lakh in FY26. The growth in net additions of 2,000 is one of the slowest in many years.
Its President, Rajesh Nambiar, said that there is no direct relationship between job growth at 2.3 per cent and revenue growth at 6.1 per cent, but expressed satisfaction that the industry continues to be a net employer.
Nasscom said that even as the tech landscape undergoes changes, it expects employee additions to continue.
The organization said that over 20 lakh of the 59.5 lakh employees have been upskilled in AI, including up to 3 lakh on advanced AI skills.
In a strategic review of the ongoing fiscal year, Nasscom estimated the overall AI revenues at USD 10-12 billion in FY26, while Nambiar said that not all companies report AI revenue.
The group also revised its FY25 revenue to USD 297 billion from the USD 282.6 billion estimate given in the review ahead of the end of the fiscal year in February last year.
Speaking about 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 spending continues to grow, albeit in newer areas, which were not traditional.
The core IT services revenues are expected to grow to USD 149 billion in FY26 from USD 143 billion in FY25, while the same for business process management will increase to USD 59 billion from USD 55 billion last fiscal year. Software products are set to reach USD 23 billion in FY26 from USD 21 billion in FY25.
Engineering, research and development revenues are set to grow to USD 63 billion from USD 59 billion, while the hardware companies' revenues are set to grow to USD 21 billion from USD 19 billion in the last fiscal year.
In a shift from the past, where the US or North America used to deliver higher growth for the industry, Nambiar said that 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, the healthcare, travel, and transportation sectors are reporting faster growth, especially with the emergence of global capability centers in the country.
