The Tech Industry in India likely to reach milestone $300Bn Revenue in FY2026:
Nasscom Annual Strategic Review 2025
National, February 24, 2025: Amid shifting global economic patterns and evolving market
dynamics, FY2025 has been a year of strategic resilience, with segments such as Engineering
R&D and GCC driving growth for the technology industry in India. Nasscom today released the
key findings of its Annual Strategic Review 2025, highlighting the defining trends of FY2025E
(estimated) and the tech industry outlook for FY2026.
Growing at 5.1% the tech industry in India added $13.8 Note to Editors:
billion incremental revenue, taking the total industry
revenue to over $282.6 Billion (including Hardware), in To track the GCC industry
revenues, every five years,
FY2025E. Sub-sectors like Engineering R&D, with GCCs
Nasscom conducts a detailed
spanning across Services and BPM, have emerged as key
industry analysis on the sector.
growth hotspots. Digital Engineering is expanding into Accordingly, based on its 2024
sectors like BFSI, Healthcare, and Retail, with nearly two- GCC landscape report, Nasscom
thirds of large deals centered on this shift. In 2024, the had restated the GCC industry
industry houses over 1750+ GCCs reflecting a growing revenues and headcount in
emphasis on high-value services and product September 2024.
engineering. The industry exports revenue now indicates
The Strategic Review industry
an equal revenue split between Global MNCs (including numbers factor this restatement.
GCCs) and Indian service providers. Based on the analysis, the industry
revenues for FY2024 with revenues
Technology's role in economic value creation continues to
of $268.8 billion and 5.67 million
expand, with tech-driven investments accounting for a
employees. This re-evaluation is
growing share of revenues as businesses across sectors reflected across industry sub-
integrate digital capabilities. India's digital economy sectors.
driven by sustained growth in domestic tech spending
outpaced export growth for the second consecutive year,
with domestic tech revenues registering a 7% annual
Key FY2025E Highlights
increase from FY2024. The momentum has been further
driven by increased adoption of enterprise software and • Industry revenue break-up
cloud solutions, alongside a 21% growth in data centre o IT Services $137.1 Bn
capacity driving increased investments. o BPM $54.6 Bn
o ER&D $55.7 Bn
The broader digital economy now contributes an o Software product
estimated 12% to GDP, with Digital Public Infrastructure $16.1 Bn
adding a 1% value boost. E-commerce continues to o Hardware $19.2 Bn
expand rapidly, growing at a 35% annual rate, with • Export revenue at $224.4 Bn
projected GMV nearing $200 billion. • Domestic revenue at $58.2 Bn
• 126,000 net hiring with a total
As India steadily advances in AI maturity, enterprises are headcount of 5.8 Mn.
expanding their AI initiatives at scale. While overall AI
adoption remains measured, over 55% of AI activity by
Indian tech services firms focused on building long-term co-creation partnerships to develop
scalable, future-ready AI solutions. Notably, more than 90% of the top 20 services companies are
integrating AI, Cloud, Data, and GenAI across business functions, with 10-15% of enterprise
GenAI PoCs transitioning to full-scale production.
Despite the irreversible shifts led by AI and global headwinds, the tech industry continues to be
a net hirer. The industry is expected to add 126,000 net new employees taking the total workforce
to 5.8 million in FY2025E.
Sindhu Gangadharan, Chairperson, Nasscom, 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 $300Bn 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.”
Rajesh Nambiar, President, Nasscom, said, “India’s tech skill intensity will be a critical driver of
future growth. While the CEO outlook for FY2026 remains measured yet positive, with increased
tech and AI spending, sustaining the growth momentum requires a strategic vision. However,
upskilling in niche and core tech areas will continue to remain of paramount importance for the
industry.”
Insights from Nasscom Tech Industry CEO Survey 2025
As we enter 2025, CEO sentiment is on an upward trajectory despite global headwinds, reflecting
cautious optimism. Approximately, 77% of tech CEOs surveyed anticipate higher business
growth, while 85% of the surveyed respondents expect client tech spending to be similar or higher
in FY2026 compared to FY2025. Notably, 63% of tech CEOs project AI investments to be higher
than 10% of their overall tech spending in FY2026.
With AI becoming increasingly integrated into the workforce, 45% of tech CEOs foresee a
healthier hiring environment compared to FY2025. However, skills will be key for new job creation.
These trends point to a cautiously optimistic industry outlook, with the tech sector projected to
achieve the milestone of $300 billion in revenue by FY2026.
About Nasscom
Nasscom represents the voice of $282 billion technology industry in India with the vision to establish the
nation as the world’s leading technology ecosystem. Boasting a diverse and influential community of over
3500+ member companies our network spans the entire spectrum of the industry from DeepTech and AI
start-ups to multinationals and from products to services, Global Capability Centres to Engineering firms.
Guided by our vision, our strategic imperatives are to accelerate skilling at scale for future-ready talent,
strengthen the innovation quotient across industry verticals, create new market opportunities - both
international and domestic, drive policy advocacy to advance innovation and ease of doing business, and
build the industry narrative with a focus on Trust, and Innovation. And, in everything we do, we will continue
to champion the need for diversity and equal opportunity.
For more details visit our website https://nasscom.in/ or write to us at: [email protected]
