Following  Nasscom Annual Strategic Review, the industry body has projected the Indian tech industry to hit $315B in FY26, up 6.1%, with AI revenue estimated to be upwards of $10 – 12 bn in fiscal 26. Nasscom restated its FY25 data on the expanded segment coverage, with more firms included in segments across IT services, BPM, ER&D, Software products and Hardware. The industry added an estimated 135000 people in the year, largely led by the global capabilities centers and over 2 million professionals who were upskilled in AI, including 2-3 lakh people   in advanced AI skills. 

On an adjusted based, In FY26(E) Nasscom expects the IT services revenue to be around $149 bn while BPM and ER&D segments are expected to contribute $59 bn and $63 bn. The software products segment is expected to contribute $23 bn while the hardware segment is expected to garner $21 bn. The industry body expects global IT services to accelerate in CY26, onthe back of improving macroeconomic stability with tariff and trade pressures easing, and by rising AI investments focused on scalable deployments, notably with a larger share of digital budgets is being allocated to AI in 2026.  

With acceleration in the adoption of AI, Rajesh Nambiar - President, NASSCOM said  “Fundamentally companies have started declaring AI related top line growth which is small portion at this point in time around 5-6%, but this could go up significantly. The impact of Ai as we move forward where the services companies pivot into AI orchestration model where ability for them to use AI for continuing to do the AI related services which also incorporates the AI related technologies.”  

While IT services segment is expected to add an incremental $6bn to the overall tech revenue growth, Nasscom noted that GCCs and ER&D continue to be the growth engine , export share stayed steady with APAC and the Middle East leading growth.  

With 86% of CXOs expecting business demand to remain stable or increase in 2026 as per the  Nasscom Global End User CXO Survey, Sindhu Gangadharan, Chairperson, Nasscom said, “90% of enterprises in India are already saying that they want to see the ROI with AI in the next three years and that data point if you compare it to countries all over the world is at the highest”. 

Looking ahead at FY27 for Indian tech sector ,Nasscom expects the year see maturation of AI spending and balancing of the near-term speed-to-market initiatives with long-cycle enterprise re-engineering. Technology spending is expected to range-bound at 5–7% y-o-y, with AI budgets rising gradually supported by enterprise adoption, while overall revenue growth is expected to be similar to FY26