MUMBAI, Feb 24 (Reuters) - India's technology sector is projected to experience accelerated growth this fiscal year, propelled by engineering research and development and the increasing number of global capacity centers (GCC), or low-cost offshore hubs, announced leading industry body Nasscom on Monday.
Nasscom anticipates a 5.1% increase in the industry's revenue to $282.6 billion in fiscal year 2025, surpassing the prior year's 4%, with revenue poised to exceed $300 billion in fiscal 2026.
Software exports, encompassing services and product sales to clients, are forecasted to grow by 4.6% to $224.4 billion in fiscal year 2025, as reported by the industry body.
It is estimated that the sector will create a net total of 126,000 jobs, elevating the overall workforce to 5.8 million in fiscal year 2025, Nasscom further stated.
The industry's total employment increased to 5.67 million in fiscal 2024 from 5.58 million in the previous year.
Sindhu Gangadharan, Chairperson of Nasscom, remarked, "Enhanced artificial intelligence implementation, the emergence of Agentic AI, and the increasing maturity of GCCs as value hubs are reshaping industry dynamics."
Prominent Indian IT service providers including Tata Consultancy Services, Infosys, and HCLTech have observed early indications of a rebound in discretionary spending and an improved demand environment following a lackluster 2024, where growth nearly halved due to client spending restraint and deferred decision-making.
Agentic AI represents the next stage in artificial intelligence, enabling the system to perform tasks autonomously on behalf of users through 'AI agents'.
The rise of AI has posed potential challenges to the business models of Indian IT firms, which predominantly cater to clients in the United States for operational support and software as a service.
Gangadharan emphasized, "The convergence of technology, geopolitics, and trade necessitates a proactive approach, with enterprises prioritizing workforce tech transformation, cultivating digital trust, and fostering resilience to drive sustainable growth."