India’s technology sector is seeing new opportunities from areas like engineering research and development (R&D) and global capability centres spanning across services and business process management are emerging as key growth hotspots.
Driven by these opportunities, the expectation is India's technology industry will hit a $300 billion revenue milestone in the 2025-2026 financial year, up from the expected $282.6 billion in the current year ending March 2025, according to Nasscom.
Digital engineering is expanding into sectors like BFSI (banking, financial services and insurance), healthcare, and retail, with nearly two-thirds of large deals centred on this shift, noted Nasscom.
In 2024, the industry housed over 1,750 GCCs reflecting a growing emphasis on high-value services and product engineering, it pointed out.
Enterprises are also scaling AI initiatives at scale. While overall AI adoption remains measured, over 55 per cent of AI activity by Indian tech services firms focused on building long-term co-creation partnerships to develop scalable, future-ready AI solutions, according to Nasscom.
"Enhanced AI implementation, the rise of Agentic AI, and the growing maturity of GCCs as value hubs are reshaping industry dynamics," said Sindhu Gangadharan, chairperson of Nasscom.
AI creating new opportunities
"By 2028, we expect AI to create 2.7 million new jobs in India. And this is also powered by India’s fast AI talent pool, and we are expected to reach and grow over 1.25 million by 2027 (Indian AI talent)," said Gangadharan.
Gangadharan, who is also the MD of SAP Labs India, believes AI can't replace human intelligence and will only help augment and unlock new possibilities, she said at the Nasscom technology and leadership forum in Mumbai.
The industry is expected to add 1,26,000 net new employees taking the total workforce to 5.8 million expected in the current financial year.
According to Nasscom, 30 per cent of Indian organisations are implementing AI solutions, compared with the global average of 26 per cent.
Cautious optimism
Since Donald Trump returned as the US President, growing trade tensions and what impact will tariffs have on the global economy have led to rising uncertainties.
Despite the global headwinds, CEO sentiments reflect cautious optimism, as per Nasscom’s tech industry CEO survey.
About 77 per cent of tech CEOs surveyed anticipate higher business growth, while 85 per cent of the surveyed respondents expect client tech spending to be similar or higher in FY2026 compared to FY2025, it said.
"India’s tech skill intensity will be a critical driver of future growth," said Rajesh Nambiar, president of Nasscom.
Upskilling in niche and core tech areas will continue to remain of paramount importance for the industry, he said.
