India's tech industry to cross $300 billion by FY26: NASSCOM survey

• 24 Feb 2025
• TM Team
• 0 Comments

India's technology sector is on track to surpass $300 billion by fiscal year 2026 (FY26), despite ongoing volatility, according to a recent survey conducted by trade body NASSCOM. The findings suggest that the industry’s growth will be propelled by significant advances in artificial intelligence (AI), particularly through the integration of Agentic AI, which is expected to drive major shifts in business models across enterprises.

The role of AI

As enterprises ramp up AI implementation, the adoption of Agentic AI is poised to reshape traditional business structures, driving new efficiencies and innovations, according to the Survey. This technological evolution will play a key role in the continued rise of Global Capability Centres (GCCs), which are maturing into hubs of value and transformation for global enterprises.

In fact, this transformation of GCCs is already under play. According to Sanjay Menon, Managing Director of Publicis Sapient, “GCCs in India are no longer just about saving costs; they’re becoming critical drivers of innovation." Menon believes that AI enables us to streamline legacy processes and shift focus to more strategic initiatives, which adds real business value.

The impact of geopolitics

The survey also highlighted the growing intersection of technology and geopolitics, with the ongoing trade wars and shifting global relations influencing technological strategies worldwide. The technology sector's increasing role in these geopolitical dynamics underscores the need for companies to adapt to external pressures.

Upskilling of tech workforce

A key trend identified by the Survey is the ongoing transformation of the tech workforce. With a heightened focus on tech skills development, the integration of AI into the workforce is seen as crucial for staying competitive. Companies are increasingly prioritising digital resilience and trust, with organisations investing more in building secure, future-proof systems to navigate the evolving landscape.