Indian IT industry to grow 5.1% in FY25; likely to cross $300 bn in FY26: Nasscom
- Workforce is likely to grow by 1.26 lakh to 58 lakh in FY25 - GCCs increasingly becoming a big part of Indian IT industry - Technology spend of domestic industries growing as per the report
IT industry to grow to $300 billion revenue, says Nasscom
Bengaluru: Indian technology industry is likely to reach a revenue milestone of $300 billion in FY26, reflecting 6 per cent increase over FY25, industry body Nasscom said in a
report.
According to Nasscom, Indian IT sector is projected to grow by 5.1 per cent to reach a revenue of $282.6 billion by the end of March 2025. In FY25, the Indian IT industry
is likely to add $13.8 billion of incremental revenue in the current financial year. Among various segments, traditional IT services are expected to grow by 4.3 per
cent to $137.1 billion, while business process outsourcing (BPO) revenues are set to rise by 4.7 per cent to $54.6 billion. ER&D (engineering, research & development) is
projected to expand by 7 per cent to $55.6 billion.
Exports are expected to cross the $200 billion mark growing 4.6 per cent y-o-y to touch $224 billion in FY25. Domestic technology sector is likely to grow at 7 per cent
y-o-y to reach $58.2 billion.
“USA and BFSI resurface as the key growth drivers with APAC, telecom, retail and healthcare emerging as the other key growth markets for the industry.
Nasscom’s Annual Strategic Review 2025 also said sub-sectors like engineering R&D, with GCCs (Global Capability Centres) spanning across services and BPM,
have emerged as key growth hotspots in the Indian IT industry. Around two-thirds of large deals centred on the shift of digital engineering expanding into sectors like
BFSI, healthcare and retail, the report said.
India housed over 1,750 GCCs in 2024, an indication of high-value services and product engineering. As per the report, the revenue split between global MNCs and
Indian service providers is equal, indicating the growth of rapid growth of GCCs
within Indian IT industry.
The IT workforce in India is expected to grow by 1.26 lakh to reach a total of 58 lakh employees by the end of FY25.
As India progresses in AI maturity, enterprises are expanding their AI initiatives on a larger scale. While the overall adoption of AI remains measured, over 55 per cent of
AI activity by Indian tech services firms is focused on building long-term partnerships to develop scalable and future-ready AI solutions.
Notably, more than 90 per cent of the top 20 services companies are integrating AI, Cloud, Data, and Generative AI across business functions. Moreover, 10-15 per cent
of enterprise Generative AI proof-of-concepts are transitioning to full-scale production.
