India's Tech Sector Set to Achieve $300 Billion Revenue by FY26 with Workforce Reaching 5.8 Million in FY25
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Synopsis
India's tech sector is on track to achieve $300 billion in revenue by FY26, with an increase of 126,000 jobs expected this fiscal year, boosting the workforce to 5.8 million. Key growth areas include engineering R&D and GCCs, with a strong push towards AI and digital trust.
Key Takeaways
- Projected revenue of $300 billion by FY26.
- Workforce expected to reach 5.8 million in FY25.
- Engineering R&D and GCCs are key growth drivers.
- Domestic tech revenues rose by 7% from FY24.
- E-commerce growing at a 35% annual rate.
New Delhi, Feb 24 (NationPress) The Indian tech sector is set to attain a remarkable $300 billion in revenue by FY26, according to a report from Nasscom released on Monday. This year, the industry is expected to create at least 126,000 new jobs, which will elevate the total workforce to 5.8 million.
In light of changing global economic conditions and market trends, FY25 has emerged as a year marked by strategic resilience, with areas such as engineering R&D and global capability centres (GCCs) spearheading growth in India's technology sector.
The 'Annual Strategic Review 2025' from the IT industry's leading organization indicates that the tech sector has expanded by 5.1%, adding $13.8 billion in incremental revenue, resulting in a total revenue exceeding $282.6 billion (including hardware) for FY2025E.
India's digital economy, fueled by consistent increases in domestic tech spending, has outpaced export growth for the second year in a row, with domestic tech revenues showing a 7% annual growth from FY24.
This growth has been further amplified by the rising adoption of enterprise software and cloud solutions, along with a 21% increase in data centre capacity, leading to heightened investments, as noted in the report.
Enhanced AI integration, the emergence of Agentic AI reshaping business models, and the increasing sophistication of GCCs as centers for value and transformation are propelling shifts within the industry, according to Nasscom Chairperson Sindhu Gangadharan.
As technology continues to become intricately linked with global geopolitics and trade relations, businesses must focus on transforming tech skills within their workforce.
Creating resilient organizations and investing in digital trust will be vital for navigating these trends and ensuring sustained growth in the tech sector, she added.
The overall digital economy is estimated to contribute 12% to GDP, with Digital Public Infrastructure providing a 1% value enhancement.
E-commerce is witnessing exponential growth, expanding at a 35% annual rate, with the projected gross merchandise value (GMV) approaching $200 billion.
Nasscom President Rajesh Nambiar emphasized that India's tech skill intensity will be a significant contributor to future expansion.
While the overall adoption of AI remains measured, over 55% of AI activities conducted by Indian tech services firms are focused on establishing long-term co-creation partnerships to develop scalable, future-ready AI solutions.
