The domestic tech industry is estimated to hit $315 billion in revenue in FY26, a 6.1% increase year-on-year, led by broad-based expansion across key segments, Nasscom said in its annual strategic review on Tuesday.
“The past year has been a reset for the global environment, but technology demand has remained resilient; shifting decisively towards productivity, measurable return on investment (RoI) and scaled artificial intelligence (AI) deployments,” Nasscom President Rajesh Nambiar said.
Industry-wide AI revenue at over $10-12 billion in FY26: Nasscom
The report pegged the industry-wide AI revenue at over $10-12 billion in FY26, reflecting almost 4% of overall revenues. Nasscom clarified that this number only reflects the AI revenues of services companies that chose to disclose the metric and so could be higher than $12 billion.
“We see AI revenues growing significantly in the coming years, but it will not be possible to put a number to the pace of growth,” Nambiar said.
The industry continued to be a net hirer, with headcount increasing by 2.3%, to 5.95 million (5.815 million in FY25). However, the pace of net new additions was muted, with the industry adding 135,000 new employees in FY26, just 2,000 more than 133,000 added in FY25.
AI upskilling trend
Nasscom added that over two million professionals were upskilled in AI, including 200,000-300,000 in advanced AI skills.
“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.
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,” Nasscom Chairperson Sindhu Gangadharan said.
Global capability centres (GCCs) and engineering and research & development (ER&D) continued to be the growth engines with significant headroom ahead, while niche engines like with cybersecurity, data analytics, cloud, and GCC-as-a-service becoming increasingly embedded across multiple segments.
Export share stayed steady with Asia Pacific and West Asia 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, the report said.
Exports revenue is expected to grow 5.6% in FY26, while domestic revenues are expected to accelerate 7.8%.
“India’s AI advantage is widening, making organisations more agile and outcome led. At the same time, growth engines like GCCs and ER&D are moving up the value chain, from scale to strategic ownership, reinforcing India’s role as a trusted partner built on cyber resilience and responsible AI,” Nambiar added.
Nasscom also released data from the Global End User CXO Survey which captures sentiment from CXO-level leaders at global end-user enterprises (technology buyers across industries) on demand outlook and shifting digital priorities.
The findings highlighted that 86% CXOs expect business demand to remain stable or increase in CY26 (including 56% who anticipate growth over CY25), and 90% indicate increasing AI allocation within digital budgets in CY26.