India IT sector growth is set to cross a historic milestone this fiscal year, with revenues projected to surpass $300 billion for the first time. According to industry body Nasscom, the sector is expected to grow 6.1% year-on-year to reach approximately $315 billion by March 31.
This milestone reflects both resilience and reinvention. Despite global economic uncertainty and rapid technological shifts, India’s technology industry continues to anchor global digital transformation efforts. The current expansion is being driven by renewed global IT spending, easing tariff and trade tensions, and rising investments in artificial intelligence (AI).
India IT sector growth has historically been powered by outsourcing and large-scale software services. Today, it is increasingly defined by AI integration, automation, and digital engineering capabilities.
AI Disruption and Reinvention
Indian IT stocks have been just as volatile as stocks around the world in the past few weeks. This is because investors are worried that advanced AI tools could change the way businesses work. Fears that automation would cut down on billable hours and shorten legacy service lines caused big changes in the market.
But leaders in the industry see a change that is more balanced. Srikanth Velamakanni, Vice Chairperson of Nasscom, said that AI is making some traditional jobs smaller while also opening up new ones.
AI is no longer an optional add-on. It has become embedded in virtually every proposal and solution framework across global technology firms. This structural shift is redefining India IT sector growth, turning disruption into long-term expansion potential.
Revenue Outlook and AI Potential
Nasscom says that service revenues related to AI could reach between $10 billion and $12 billion in fiscal year 2026. It’s important to note that this number doesn’t show the full AI contribution across all companies. The company expects that AI-driven sales will grow a lot in the next few years as more people around the world start using it.
Top IT service companies in India, such as Tata Consultancy Services, Infosys, and HCLTech, have said they are cautiously optimistic about demand getting better in the next fiscal year. Their plans are becoming more focused on AI-led consulting, updating the cloud, cybersecurity, and data analytics.
India IT sector growth is therefore shifting from volume-based expansion to value-driven services, where AI integration enhances productivity, efficiency, and innovation for global clients.
Employment and Workforce Transformation
In addition to making money, jobs are still an important part of India’s tech ecosystem. The sector is expected to add a net 135,000 jobs this fiscal year, bringing the total number of professionals to about 5.95 million.
As automation changes job roles, it also creates a need for new skills in areas like AI engineering, prompt design, machine learning operations, and data governance. Companies are spending a lot of money on reskilling programs to make sure their workers can compete in a world where AI is the most important thing.
India IT sector growth, therefore, is not merely about financial expansion, it is about workforce evolution. The challenge lies in managing this transition efficiently while maintaining service excellence.
Global Demand and Market Stability
Improved client confidence has also come from lowering geopolitical tensions and making global trade more stable. Companies in North America and Europe are slowly raising their IT budgets, especially for projects that involve digital transformation and AI integration.
India’s low costs, well-developed service delivery systems, and large pool of skilled workers make it a top choice for global partners. As multinational companies focus on using AI to make things more efficient, Indian companies are quickly changing to stay ahead of the curve in terms of innovation.
India IT sector growth is increasingly intertwined with global AI adoption cycles. The industry’s ability to pivot quickly has helped it convert uncertainty into strategic opportunity.
The Road Ahead
Looking ahead, industry forecasts say that revenue growth will stay steady in the next fiscal year, following a similar path. The long-term outlook is still good, even though the market may stay volatile.
The next step for the industry will depend on how well companies can balance automation with human expertise, following the rules with new ideas, and making money with efficiency.
The India IT sector growth is going through a period of major change. Going over $300 billion is more than just a financial milestone; it’s the start of a new chapter in which AI integration, a flexible workforce, and global demand will shape the future of one of the country’s most important industries.
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