Indian tech industry to reach $300 billion revenue milestone in FY26: Nasscom

The Indian tech industry, growing significantly, will reach a milestone of $300 billion in FY26, said a report by Nasscom. FY25 was a year of strategic alliance, with growth driven by engineering R&D and GCCs. 

Nasscom’s Annual Strategic Review 2025 that highlighted the defining trends of FY2025E (estimated) and the outlook for FY26 said the Indian tech industry approaches the $300 billion revenue milestone, driven by artificial intelligence implementation. 

Nasscom Chairperson Sindhu Gangadharan said, “Enhanced AI implementation, rise of Agentic AI, and the growing maturity of GCCs as value hubs are reshaping industry dynamics. As the Indian tech industry approaches the $300 billion revenue milestone in FY 2026, the intersection of technology, geopolitics, and trade demands a bold response. Enterprises must prioritize workforce tech transformation, build digital trust, and foster resilience to drive sustainable growth in this rapidly evolving landscape.”

The Indian tech industry grew at 5.1 per cent and added $13.8 billion incremental revenue, taking the total industry revenue to over $282.6 billion in FY2025E. The Nasscom report added that sub-sectors like engineering R&D, with GCCs spanning across services and BPM, have emerged as key growth hotspots. More than half – two-thirds –  of large deals centred on the shift of digital engineering expanding into sectors like BFSI, healthcare and retail. 

Nasscom stated that the industry housed over 1,750 GCCs in 2024, an indication of high-value services and product engineering. There’s an equal revenue split between global MNCs and Indian service providers.

Tech-driven investments are contributing increasingly to revenues as businesses across sectors embrace digital capabilities. In India, the digital economy has shown sustained growth in domestic tech spending, surpassing export growth for the second consecutive year. Domestic tech revenues saw a 7 per cent annual increase from FY2024.

This growth has been propelled by the increased adoption of enterprise software and cloud solutions. Additionally, a 21% expansion in data centre capacity has been a significant driver, attracting further investments in the sector.

The report added that the broader digital economy now contributes an estimated 12 per cent to GDP, with digital public infrastructure adding a 1 per cent value boost. E-commerce continues to expand rapidly, growing at a 35 per cent annual rate, with projected GMV nearing $200 billion.

As India progresses in AI maturity, enterprises are expanding their AI initiatives on a larger scale. While the overall adoption of AI remains measured, over 55 per cent of AI activity by Indian tech services firms is focused on building long-term partnerships to develop scalable and future-ready AI solutions. Notably, more than 90 per cent of the top 20 services companies are integrating AI, Cloud, Data, and Generative AI across business functions. Additionally, 10-15 per cent of enterprise Generative AI proof-of-concepts are transitioning to full-scale production.

Despite the significant changes brought about by AI and global challenges, the tech industry continues to be a net hirer. The industry is expected to add 126,000 net new employees, increasing the total workforce to 5.8 million by the financial year 2025.

Nasscom President Rajesh Nambiar, President, Nasscom said, “India’s tech skill intensity will be a critical driver of future growth,” adding that upskilling in niche and core tech areas will continue to remain of paramount importance for the industry.”