Indian Tech Industry to Hit $300 Billion Revenue by FY26

By siliconindia  |  Monday, 24 February 2025, 14:57 IST

Indian Tech Industry to Hit $300 Billion Revenue by FY26
The Indian technology sector is expected to reach $300 billion in revenue by FY26, with the employed base set to increase to 5.8 million in FY25, as per Nasscom's 'Annual Strategic Review 2025' report released on Monday. The ongoing fiscal year is projected to add 126,000 net new workers, reflecting the industry's strength through changing global market patterns.
Expanding at a 5.1 per cent rate, the technology industry contributed $13.8 billion in incremental revenue during FY25, taking the industry revenue to $282.6 billion, including hardware. For the second year running, tech expenditure within the country grew faster than exports, with revenues domestically increasing 7 per cent from FY24.
Principal drivers of this expansion are the strong growth in engineering R&D and global capability centres (GCCs). Enterprise software adoption, cloud adoption, and a 21 per cent rise in data centre capacity have spurred investments, according to the report.
"Accelerated AI adoption, the emergence of Agentic AI, and growing maturity of GCCs as value centers are fast-tracking industry transformations", noted Sindhu Gangadharan, Nasscom Chairperson. She stressed that tech skill makeover and digital trust are critical to maintaining long-term growth, particularly as technology is becoming more closely associated with global geopolitics and commerce.
India's wider digital economy now contributes approximately 12 percent to GDP, while Digital Public Infrastructure adds a further 1 per cent boost. In the meantime, the e-commerce sector remains on the growth path, rising at a 35 per cent annual rate, with gross merchandise value (GMV) forecast to reach $200 billion.
Rajesh Nambiar, Nasscom President, emphasized the intensity of technical skills as the major growth engine, with more than 55 per cent of AI activity of Indian technology companies aimed at co-creation partnership for scalable and future-proofed solutions in the long term. 
As the sector evolves based on changing marketplace needs, strengthening organizations and technological investment will remain imperative to building India's leadership as a technology superpower over the next decade.

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