India’s technology sector is poised for accelerated growth in the current fiscal year, propelled by advancements in engineering research and development and the increasing prevalence of global capacity centres (GCCs), which serve as cost-effective offshore hubs.
Industry body Nasscom has projected a 5.1 percent increase in industry revenue, reaching $282.6 billion in fiscal 2025, marking an improvement from the 4 percent growth recorded in the previous fiscal year. Looking ahead, the sector is expected to surpass the $300 billion revenue mark in fiscal 2026.
Software exports, which encompass services and product sales to global clients, are set to grow by 4.6 percent to $224.4 billion in fiscal 2025. This expansion is accompanied by a substantial rise in employment, with a projected net addition of 126,000 jobs, bringing the sector’s total workforce to 5.8 million.
In fiscal 2024, the industry’s headcount grew to 5.67 million from 5.58 million, reflecting a steady increase in employment opportunities. According to Nasscom Chairperson Sindhu Gangadharan, transformative factors such as enhanced artificial intelligence implementation, the advent of Agentic AI, and the evolution of GCCs into strategic value hubs are reshaping the industry landscape.
Major Indian IT firms, including Tata Consultancy Services, Infosys, and HCLTech, have indicated early signs of a recovery in discretionary spending and an improvement in the demand environment. This follows a lackluster 2024, during which growth nearly halved as clients postponed spending and delayed decision-making.
The emergence of Agentic AI, which enables AI systems to function autonomously and perform tasks on behalf of users through AI agents, is considered a breakthrough in artificial intelligence. While AI has the potential to revolutionize the industry, it also poses a challenge to traditional business models, particularly for Indian IT companies that primarily provide operations support and software-as-a-service solutions to clients in the United States.
Baburajan Kizhakedath
