Amid concerns over jobs shrinking due to the impact of Artificial Intelligence (AI), the National Association of Software Services Companies (NASSCOM) has projected the Indian technology industry’s revenue growth at 5.1% to $282.6 billion in FY 2025-26.
“While the CEO outlook for FY26 remains measured yet positive, with increased tech and AI spending, sustaining the growth momentum requires a strategic vision,” Rajesh Nambiar, the President of NASSCOM, said at the 33rd NASSCOM Technology and Leadership Forum here on Monday.
“However, upskilling in niche and core tech areas will continue to remain of paramount importance for the industry,” he added.
Domestic revenue is projected to grow at a faster 7% to $58.2 billion as compared with revenue growth in exports at 4.6%.
The proportion of IT Services and Engineering research and development (R&D) will continue to dominate in the total revenue, according to the NASSCOM Annual Strategic Review 2026.
While the estimated growth is robust, the report also stated that about 55% of the CEOs surveyed believed that hiring was expected to stay the same or reduce in fiscal 2026.
About two-thirds of them said that more than 10% of the tech spends would be on artificial intelligence.
In a media briefing, Fractal co-founder Srikanth Velamakanni, reiterated the data saying companies would spend more on technology than human resources.
In another session, the CEOs of HCL and Infosys C. Vijayakumar and Salil Parekh sought to approach changes resulting from AI adoption with “paranoia” and not be complacent about them. They said this would ensure firms emerged as “winners”.
Maharashtra Chief Minister Devendra Fadnavis asserted that the State would emerge as an AI hub. He said this would be an important step toward Maharashtra becoming a $1 trillion economy.
In the final session, Minister of Information and Broadcasting Ashwini Vaishnaw said the response to the tender to procure 10,000 graphics processing units (GPUs) was encouraging and that they had received orders for 18,000 units, all for less than a dollar per unit. Mr. Vaishnaw said that the industry had to maintain competitiveness.
“I request that to maintain competitiveness of the industry, NASSCOM as a body and the government, must put our maximum effort on creating that pipeline of time,” he said.
Published – February 24, 2025 11:23 pm IST
