India’s IT biz to grow 6% to $300bn in next FY

Mumbai: India’s technology sector is poised to reach a defining milestone, emerging as a $300 billion powerhouse during the 2025-26 financial year, growing 6% over the previous year, tech industry body Nasscom’s Annual Strategic Review 2025 showed. The sector demonstrated a 5.1% growth, contributing an additional $13.8 billion in revenue, reaching a total of $282.6 billion in the 2024-25 fiscal year. Nasscom restated the tech sector number to $268.8 billion in the 2023-24 financial year from the $254 billion it called out previously.

India’s tech sector, which has a 7.3% relative share of India’s GDP, has played a significant role in shaping the country’s economy. India’s tech exports are expected to grow 4.6% to $224.4 billion in the 2024-25 financial year compared to $214.4 billion in the year-ago period. The domestic sector grew 7% to $58 billion during the same period.

For the first time, Nasscom highlighted an even distribution in export revenues between MNCs and Indian IT firms, with each contributing $112 billion. “We feel that there is a good balance between what the global companies, MNCs, and what the India-based IT services providers are doing. The fact is that they figured out a way to coexist. I know there was a time when there was always talk about IT GCC versus IT services providers and so on. However, most service providers that I know of have created a GCC practice with- which means in them, they’re serving the GCCs in some sense. So, that’s a good balance,” said Nasscom president Rajesh Nambiar at the Nasscom Technology & Leadership Forum 2025.

India’s tech sector hired 126,000 people in the 2024-25 financial year, taking the total talent base to 5.8 million. Nasscom has restated that it hired 90,000 employees during the year-ago period taking the tally to 5.6 million.. This comes at a time when the large IT firms are seeing a decline in headcount, and much of the net addition last year was on account of GCCs.

Sindhu chairperson of Nasscom, said, “The key message is co- creation and collaboration, and this is what’s happening on the ground because many of our global customers are also sitting here in India. In that sense, many service providers are co-creating IPs for our common customers.”

Source: GWFM Research & Study