India’s technology industry is set to reach a revenue of $300 billion by FY26, according to a report from Nasscom. For the current fiscal year (FY25), the industry is expected to add around 126,000 new jobs, bringing the total workforce to 5.8 million.
Despite changing global economic conditions and market shifts, the Indian tech sector has shown strong resilience in FY25. Growth drivers include segments like engineering research and development (R&D) and global capability centers (GCCs), which have contributed significantly to the sector’s performance.
The Nasscom ‘Annual Strategic Review 2025’ report highlights that the industry has grown by 5.1%, adding $13.8 billion in revenue, taking the total industry revenue to over $282.6 billion, including hardware. India’s digital economy is now increasingly driven by sustained growth in domestic tech spending, which outpaced export growth for the second year in a row. Domestic tech revenues have seen a 7% increase from FY24.
A major factor in this growth has been the rising adoption of enterprise software and cloud solutions. Additionally, the capacity of data centers has expanded by 21%, leading to increased investments in the tech sector.
The industry is also experiencing significant shifts due to enhanced artificial intelligence (AI) implementation. AI, especially Agentic AI, is disrupting traditional business models, while the growing maturity of GCCs is positioning them as hubs for innovation and value transformation.
The broader digital economy is now contributing an estimated 12% to India’s GDP, with Digital Public Infrastructure adding another 1% boost. E-commerce is also thriving, growing at a 35% annual rate, and is projected to reach a gross merchandise value (GMV) of nearly $200 billion.
Rajesh Nambiar, President of Nasscom, highlighted the importance of India’s growing tech skill intensity as a key factor in driving future growth. Although AI adoption remains cautious overall, over 55% of AI activity in Indian tech services firms is focused on creating long-term co-creation partnerships aimed at building scalable, future-ready AI solutions.
