India tech industry revenue to touch $315B in FY26: NASSCOM

India's technology industry is seeing strong momentum, with an estimate revenue of $315 billion in FY26 registering a growth of 6.1% but the headcount increased by just 2.3%, revealing the structural changes undergoing in the sector driven largely by artificial intelligence (AI).

In its Annual Strategic Review 2026, Nasscom said FY26 marked a decisive inflection point for India’s tech industry, where AI moved from experimentation to function-specific, reshaping operating models and accelerating productivity.

The projected revenue of $315 billion has IT services contributing $149 billion, business process management $59 billion, engineering R&D $63 billion, software products $23 billion and hardware $21 billion. The total export revenue for FY26 is estimated at $246 billion.

Nasscom Chairperson Sindhu Gangadharan said, “AI is accelerating productivity and changing the nature of work, but it is also expanding the opportunity frontier. As AI gets embedded across functions, we will see roles redesigned around outcomes, deeper specialisation, and significantly higher AI fluency.”

According to Nasscom, over two million professionals were upskilled in AI, including 200,000 to 300,000 in advanced AI skills. It further noted that AI revenue is estimated at upwards of $10 – 12 billion in FY26, reflecting the shift to scaled deployments and ROI-driven adoption.

“The industry’s focus is on building ‘Human + AI’ teams, investing in continuous skilling, and converting efficiency gains into growth, creating new jobs and new career pathways even as delivery becomes more agile and more resilient,” Gangadharan said.

GCCs and ER&D continued to be the growth engines with significant headroom ahead, while niche engines are achieving critical mass; with cybersecurity, data analytics, cloud, and GCC-as-a-service becoming increasingly embedded across multiple segments. The export share stayed steady with APAC and the Middle East leading growth, the domestic market continued to expand steadily, and the vertical mix evolved with gradual gains in emerging sectors such as healthcare and travel and transportation, largely driven by GCCs.

Nasscom President Rajesh Nambiar said, “The past year has been a reset for the global environment, but technology demand has remained resilient; shifting decisively toward productivity, measurable ROI and scaled AI deployments. India’s AI advantage is widening, making organisations more agile and outcome led.”

Nasscom said industry leaders are rethinking offerings and operating models in an AI-first era. Moving from discrete service delivery to solutions that embed IP through platformisation and productisation.