6 days ago

India’s IT Sector Seen Holding 6% Growth on AI Adoption

India’s IT sector is expected to keep growing at about 6% next year.

Technology exports and the use of artificial intelligence are helping support this growth.

Companies are moving from basic, high-volume work to more valuable digital services.

Bigger IT companies started the year with only small growth.

Smaller and mid-sized companies performed somewhat better because they won new deals and earned more from AI services.

Company profits were affected by higher salaries and spending on AI workers.

India has become a major place for developing AI skills.

Government programs and tax rules are also helping the industry.

However, companies must keep training workers, and much of the sector’s spending still comes from the United States and Europe.

Key facts

FY27 revenue growth: Projected at 6%.
FY26 revenue growth: Estimated at 6.1%.
FY26 IT services exports: $418 billion.
FY27 operating margin: Projected to recover to 21.8%.
FY27 debt-to-equity: Expected to decline to 0.1.
AI infrastructure: More than 38,000 GPUs are being deployed under the India AI Mission.
Global capability centres: More than 1,700 centres are leveraging domestic data-centre capacity, which is expanding at over 20% annually.
FY25 IT spending concentration: The United States accounted for 52.9% and Europe for 32.8% of IT spending.

thehansindia.com · 6 days ago