India’s information technology sector is set to cross a historic milestone. The country’s IT industry is expected to exceed 300 billion dollars in revenue for the first time during the 2025-2026 fiscal year, reaching around 315 billion dollars.
According to the annual strategic report published by NASSCOM, the main professional association for the Indian IT sector, revenues are projected to grow by 6.1% year-on-year, confirming the strength of India’s digital services and IT outsourcing model.
This growth is driven by a gradual recovery in global demand for digital services, easing trade tensions, and accelerating investments in artificial intelligence.
Revenues directly linked to AI are estimated at 10 to 12 billion dollars by 2026. NASSCOM notes that this figure only includes companies that chose to report AI-related revenue, suggesting that the real market potential could be even higher.
Presenting the report, NASSCOM Vice President Srikanth Velamakanni highlighted that AI is reshaping digital jobs. While some traditional tasks are automated, new high-value functions are emerging, making AI a central component of any digital offering.
On the employment front, the sector is expected to generate around 135,000 net new jobs in 2025-2026, bringing total IT sector employment to nearly 5.95 million people, reinforcing India’s position as a global hub for IT services and technological innovation.
