Despite the instabilities arising from geo-political tensions and the change in scenario due to artificial intelligence platforms, the revenue of the Indian technology industry is expected to increase by 6.1 percent to reach $ 315 billion in the financial year 2025-26. NASSCOM, an organization of IT companies, said this on Tuesday. The industry organization said that the sector was successful in generating employment opportunities in the financial year 2025-26. With 1.35 lakh new recruitments in the current financial year, the total number of direct employees will increase to 59.5 lakh, which was 58.15 lakh at the end of the financial year 2024-25. The industry had added 1.33 lakh jobs on a net basis in the financial year 2024-25, which is expected to increase to 1.35 lakh in the financial year 2025-26. The net growth of 2,000 is one of the slowest in many years.
No coordination between employment and revenue
NASSCOM Chairman Rajesh Nambiar said there is no coordination between employment growth of 2.3 per cent and revenue growth of 6.1 per cent but expressed satisfaction over the industry continuing to be a net employment creator. According to NASSCOM, despite the change in technology outlook, it expects the number of employees to continue increasing in the future. The organization said that out of 59.5 lakh employees, more than 20 lakh have been exposed to AI, of which up to three lakh have been trained in advanced AI skills. In its strategic review of the current financial year, Nasscom estimated the total AI revenue to be US $ 10-12 billion in the financial year 2025-26, while Nambiar said that not all companies report AI revenue.
Spending on technology is increasing
The group also increased the revenue estimate for financial year 2024-25 to $ 297 billion. It was valued at US$282.6 billion in the review before the end of the financial year in February last year. On industry-wide trends and reasons for revenue growth in FY 2025-26, Nambiar acknowledged the challenges facing the industry. The reality is that spending on technology is increasing, although now in new areas rather than traditional areas. The revenue of core IT services is estimated to reach US $ 149 billion in FY 2025-26, which was US $ 143 billion in FY 2024-25. Business process management revenue will increase from US$55 billion to US$59 billion on an annual basis. The revenue of software products is likely to increase from $ 21 billion in the financial year 2024-25 to $ 23 billion in the financial year 2025-26.
Their revenue will also increase
The revenue of engineering, research and development is estimated to increase from $59 billion to $63 billion while the revenue of hardware companies is expected to increase from $19 billion to $21 billion. Nambiar said that earlier America or North America used to provide more growth to the industry. However, now rapid growth has been recorded in the Asia-Pacific and West Asia regions. Revenue from the domestic market is estimated to grow at the rate of 7.9 percent in financial year 2025-26, which is much faster than the global average. From a sector-wise perspective, the healthcare, travel and transportation sectors are registering rapid growth especially with the emergence of global competence centers in the country.