The IT sector in India is in the eye of the storm, given the global rout on fears of AI-led disruption. Fears of job loss is one of the cardinal concerns. However, the IT sector industry body Nasscom predicts that India’s technology sector is expected to grow 6.1% to $315 billion revenue in FY26 and remain around that level in FY27. According to Reuters, Nasscom said that the growth will be driven by artificial intelligence-led services as well as business at global capacity centres.
Nasscom expects tech workforce to reach 5.95 million in FY26
Nasscom President Rajesh Nambiar said the IT industry continues to be a net job generator. Nambiar expects the Tech sector to add 135,000 jobs on a net basis, taking the total headcount to 5.95 million in FY26.
\Earlier in FY25, The total workforce rose to 5.8 million from 5.67 million in FY24. “There is no question that the overall hiring from the campus has come down significantly from where it used to be,” said Nasscom President.
IT sector hit by weak demand and AI disruption fears recently
The prediction comes as IT and software services industry has been facing a double whammy of tepid demand and threat of disruption from advanced AI tools.However, top Indian IT service providers such as Tata Consultancy Services (TCS), Infosys and HCLTech have signaled better demand for FY27, stemming from strong contract bookings and return of discretionary spending.
IT stocks slide nearly 5% intraday on AI concerns
The tech sector also declined in today’s trade, falling nearly 5% intraday. One of the reasons was updates to Claude Code announced by leading AI firm Anthropic. Brokerage Jefferies also downgraded six domestic software companies, including Tata Consultancy Services (TCS) and Infosys, citing concerns over structural shifts in the business model due to AI tools.