India's IT sector added 1.35 lakh jobs in FY26, workforce hits 60 lakh
Synopsis
Despite relentless AI anxiety, India's IT sector quietly added 1.35 lakh jobs in FY26, taking total headcount to 60 lakh — a figure the government placed on parliamentary record. The real story is the split inside that number: knowledge workers feel twice as secure as those in repetitive roles, and entry-level QA and IT support jobs are already in automation's crosshairs.
Key Takeaways
MeitY confirmed in a Lok Sabha written reply on 29 July that India's IT sector added approximately 1.35 lakh jobs in FY26 .
Total IT workforce reached 60 lakh by end of FY26, making the sector a net hirer despite AI-driven restructuring.
NITI Aayog assessments cited by the ministry acknowledge widespread restructuring, with junior QA and Level-1 IT support roles most at risk.
Nasscom attributes workforce adjustments to changing business models and cyclical factors, not structural decline.
ADP Research data shows 30 per cent of Indian workers feel job-secure — highest in Asia Pacific and third globally.
Knowledge workers report job security confidence at 37 per cent , versus 17-18 per cent for repetitive and skilled task workers.
India's information technology (IT) sector remained a net employer in FY26, adding approximately 1.35 lakh jobs during the fiscal year, the government informed Parliament on Wednesday, 29 July. The Ministry of Electronics and Information Technology (MeitY) disclosed in a written reply to the Lok Sabha that the industry's total workforce reached 60 lakh by the end of FY26 — a substantial surge that directly counters widespread fears of AI-driven job losses.
Key Developments
MeitY's parliamentary response confirmed that net hiring remained positive despite accelerating adoption of automation and artificial intelligence across the sector. The ministry cited assessments from policy think-tank NITI Aayog, which acknowledged that AI and automation are causing significant restructuring within the industry. However, officials were clear that restructuring has not translated into net job losses — at least not yet.
Entry-level roles such as junior quality assurance and Level-1 IT support were identified as most exposed to automation risk. At the same time, the technology shift is generating demand for specialised, next-generation roles, which has helped sustain overall hiring momentum.
What Industry Bodies Said
Industry association Nasscom had previously stated that major workforce adjustments in the sector reflect evolving business models and cyclical factors rather than any structural decline in tech employment. The body's position aligns with the government's net-positive hiring data, though it stops short of dismissing the long-term risks posed by generative AI.
Notably, a recent report by ADP Research found that nearly 30 per cent of Indian workers felt their jobs were secure — placing India third globally and highest in the Asia Pacific region for job security sentiment. Across the broader Asia Pacific region, only 18 per cent of respondents reported feeling safe in their roles.
The AI Restructuring Picture
Within India, job security sentiment varies sharply by role type. Knowledge workers reported confidence at 37 per cent — roughly twice the rate of skilled task workers (18 per cent) and repetitive task workers (17 per cent), according to the ADP Research data. This divergence underscores the uneven impact of automation across the workforce.
A separate recent report concluded that generative AI is not causing widespread job displacement in India's IT sector but is instead reorganising work, raising productivity, and shifting demand toward hybrid skill sets that blend technical and domain expertise.
What Comes Next
The government's data offers a near-term reassurance, but the structural question — whether AI-driven productivity gains will eventually compress headcount — remains open. With generative AI adoption accelerating across major IT clients globally, the composition of India's 60-lakh-strong tech workforce is expected to shift meaningfully over the next two to three years, even if aggregate numbers hold.
Point of View
But it masks a structural fault line. Entry-level IT roles are already being hollowed out; the new jobs being created demand hybrid skill sets that fresh graduates from tier-2 and tier-3 colleges are not yet trained for. India's IT workforce may be growing in size while shrinking in accessibility for the bottom of the pyramid. The government's parliamentary disclosure is a data point, not a policy response — and without a reskilling roadmap tied to these numbers, the 60-lakh figure could become a ceiling rather than a floor.
NationPress
29 Jul 2026
Frequently Asked Questions
How many jobs did India's IT sector add in FY26?
India's IT sector added approximately 1.35 lakh jobs in FY26, according to a written reply submitted by MeitY to the Lok Sabha on 29 July. The sector's total workforce stood at 60 lakh by the end of the fiscal year.
Is AI causing job losses in India's IT sector?
Not on a net basis, according to government data for FY26. However, MeitY cited NITI Aayog assessments confirming that AI and automation are causing widespread restructuring, with entry-level roles such as junior QA and Level-1 IT support most at risk. Generative AI is reorganising work and shifting demand toward hybrid skill sets rather than eliminating jobs outright, according to recent industry reports.
Which IT roles are most at risk from automation?
Entry-level positions — specifically junior quality assurance and Level-1 IT support — are identified as most exposed to automation, according to MeitY's parliamentary reply. Repetitive task workers report the lowest job security confidence at 17 per cent, per ADP Research data.
How does India compare globally on IT job security?
India ranks third globally and first in the Asia Pacific region for job security sentiment, with 30 per cent of Indian workers reporting confidence in their roles, according to ADP Research. Across Asia Pacific, the average is just 18 per cent.
What has Nasscom said about IT workforce changes?
Nasscom has stated that major workforce adjustments in the sector reflect evolving business models and cyclical factors rather than a structural decline in tech employment. The industry body's position is broadly consistent with the government's net-positive hiring figures for FY26.
