Revenue Projections:
- Indian tech industry revenue projected to grow 5.1% to $282.6 billion in FY 2025-26 (NASSCOM Annual Strategic Review 2026).
- Domestic revenue to grow faster at 7% to $58.2 billion, while exports projected at 4.6% growth.
- IT Services and Engineering R&D to continue dominating revenue share.
Relevance : GS 3(Economy)
Job Market & Hiring Trends:
- Despite revenue growth, 55% of surveyed CEOs expect hiring to plateau or reduce in FY26.
- AI adoption prompting companies to prioritize technology spending over human resources.
- Concerns over job shrinkage due to AI are increasing.
Artificial Intelligence (AI) Focus:
- Around two-thirds of CEOs project over 10% of tech spending on AI.
- CEOs of HCL and Infosys urge firms to approach AI adoption with “paranoia” to avoid complacency and ensure competitiveness.
- Maharashtra aims to become an AI hub to support its $1 trillion economy target .
Upskilling & Strategic Vision:
- Upskilling in niche tech areas emphasized as crucial for industry sustainability (Rajesh Nambiar, NASSCOM President).
- Sustaining growth requires a strategic vision beyond just AI investment.
Government Initiatives & Competitiveness:
- Positive response to tender for 10,000 GPUs, with 18,000 orders placed at less than $1 per unit.
- Stressed the need to maintain industry competitiveness through proactive efforts by NASSCOM and government.
Key Takeaways:
- Revenue growth remains robust but job growth lags amid AI-driven disruptions.
- Skill development and balanced tech adoption are vital to navigate emerging challenges.
- India’s tech competitiveness hinges on AI leadership and domestic market expansion.
