India's technology sector is expected to grow at a higher pace this fiscal year, driven by engineering research and development and the rising number of global capacity centres (GCC), or low-cost offshore hubs, industry body Nasscom said on Monday.
Nasscom expects the industry's revenue will grow 5.1% to $282.6 billion in fiscal 2025, compared with the previous fiscal's 4%, with revenue crossing $300 billion in fiscal 2026.
Software exports, comprising services and sale of products to clients, are expected to grow 4.6% to $224.4 billion in fiscal year 2025, the industry body said.
The sector is expected to add 126,000 jobs on a net basis, taking the total workforce to 5.8 million in fiscal year 2025, it added.
The industry's total headcount rose to 5.67 million in fiscal 2024 from 5.58 million a year earlier.
"Enhanced artificial intelligence implementation, the rise of Agentic AI, and the growing maturity of GCCs as value hubs are reshaping industry dynamics," said Sindhu Gangadharan, Chairperson, Nasscom.
Top Indian IT service providers such as Tata Consultancy Services, Infosys and HCLTech < HCLT.NS> have highlighted early signs of discretionary spending picking up and an improvement in the demand environment after a tepid 2024, in which growth nearly halved as clients held back spending and delayed decision making.
Agentic AI is considered the next frontier in artificial intelligence, allowing the system to operate autonomously and perform tasks on behalf of users through 'AI agents'.
AI's emergence has threatened to disrupt business models for Indian IT companies that largely serve clients in the United States for operations support, providing software as a service.
"The intersection of technology, geopolitics, and trade demands a bold response and enterprises must prioritise workforce tech transformation, build digital trust, and foster resilience to drive sustainable growth," Gangadharan said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
