Key Points
Indian tech industry to reach $300bn revenue by FY26
Workforce expected to grow to 5.8 million in FY25
Digital economy contributes 12% to GDP
AI and enterprise solutions driving industry growth
Amid shifting global economic patterns and evolving market dynamics, the current fiscal (FY25) has been a year of strategic resilience, with segments such as engineering R&D and global capability centres (GCCs) driving growth for the technology industry in India.
According to the 'Annual Strategic Review 2025' by the IT industry's apex body, growing at 5.1 per cent, the tech industry added $13.8 billion incremental revenue, taking the total industry revenue to over $282.6 billion (including hardware), in FY2025E.
India's digital economy driven by sustained growth in domestic tech spending outpaced export growth for the second consecutive year, with domestic tech revenues registering a 7 per cent annual increase from FY24.
The momentum has been further driven by increased adoption of enterprise software and cloud solutions, alongside a 21 per cent growth in data centre capacity driving increased investments, the report mentioned.
"Enhanced AI implementation, rise of Agentic AI disrupting business models, and increasing maturity of GCCs as hubs for value and transformation are driving the industry shifts," Nasscom Chairperson Sindhu Gangadharan said.
As technology becomes deeply intertwined with global geopolitics and trade dynamics, enterprises must prioritise tech skills transformation within the workforce.
"Building resilient organisations and investing in digital trust will be critical to shaping these trends and sustaining the tech industry's long-term growth," she mentioned.
The broader digital economy now contributes an estimated 12 per cent to the GDP, with Digital Public Infrastructure adding a 1 per cent value boost.
E-commerce continues to expand rapidly, growing at a 35 per cent annual rate, with projected gross merchandise value (GMV) nearing $200 billion.
Nasscom President Rajesh Nambiar said that India's tech skill intensity will be a critical driver of future growth.
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.
