Nasscom pegs India tech sector growth at 6% for FY26 driven by AI services, local centres of MNCs

India’s technology sector is expected to grow 6.1% to $315 billion revenue in the ongoing fiscal year and remain around that level next fiscal, driven by artificial intelligence-led services as well as business at global capacity centres, an industry body said on Tuesday.

Nasscom raised last fiscal year’s revenue for the sector to $297 billion from $283 billion earlier.

The prediction comes as IT and software services industry has been facing a double whammy of tepid demand and threat of disruption from advanced AI tools. A selloff in Indian IT stocks earlier this month wiped out about $44 billion in market capitalisation.

However, top Indian IT service providers such as Tata Consultancy Services, Infosys and HCLTech have signaled better demand for fiscal year 2027, stemming from strong contract bookings and return of discretionary spending.

The tech sector is expected to add 135,000 jobs on a net basis, taking the total headcount to 5.95 million in fiscal year 2026, Nasscom said.

The total workforce rose to 5.8 million in fiscal 2025 from 5.67 million a year earlier.

“There is no question that the overall hiring from the campus has come down significantly from where it used to be,” said Rajesh Nambiar, president of Nasscom.