IT Industry in India is projected to cross 300 billion dollars amid AI-driven challenges

NASSCOM estimated that, India’s information technology sector will grow to 6.1% from 5.9% expansion recorded in FY25, to reach 315 billion dollars in revenue for the first time in the current fiscal year. This increase is driven by AI-led services and business at global capacity centres (GCCs).

As the global IT services pick up pace, fuelled by easing tariff and trade tensions and rising AI investments, Nasscom expects the sector to grow.

This prediction came as IT and software services industry had been ?facing setback by slow sales and threat of disruption from advanced AI tools. A selloff in Indian IT stocks earlier ‌this month wiped out about 44 ?billion dollars in market capitalisation. This made investors worry that advanced AI tools would disrupt the traditional business models of software firms, shaving billions off their market value.

“AI is compressing traditional work but expanding other areas of work”, says vice chairperson of Nasscom. Also added that, AI is now an inevitable, fundamental part of every proposal in every company., as there is no single proposal in tech company globally that doesn’t have AI in it. 

The IT sector is expected to add a net 135,000 jobs in the fiscal year. India's leading IT service providers, including Tata Consultancy Services, Infosys, and HCLTech, have signalled better demand for 2027 fiscal year.

AI Contribution to the Sector 

AI revenues are now estimated at 10?12?billion dollars, representing a small but rapidly expanding portion of total earnings.  

Major service providers have disclosed AI income, indicating that enterprises are moving beyond pilot projects to scaled AI deployments. 

TCS reports AI revenue of about 1.8?billion dollars, on an annualised run rate. 

HCLTech cites AI earnings of 146?million dollars, roughly 4% of its topline. 

Infosys states AI generates 275 million dollars, revenue, around 5.5%.

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