Archive · 27 Aug 2026
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.
India’s IT sector revenue growth is projected at 6% in FY27, following estimated 6.1% growth in FY26.
Technology exports, AI adoption and policy support are expected to sustain sector growth, Brickwork Ratings said.
Operating margins are forecast to recover to 21.8%, while debt-to-equity is expected to fall to 0.1 in FY27.
The sector is shifting from volume-based contracts toward higher-value digital services driven by AI and hyper-automation.
India’s IT services exports reached $418 billion in FY26, but dependence on US and European spending creates geographic concentration risk.
- Who
- India’s IT sector and companies, as assessed by Brickwork Ratings.
- What
- The sector’s revenue growth is projected to remain around 6% in FY27, supported by exports, AI adoption and policy measures.
- When
- The projection concerns FY27; the report was released on Wednesday and also assessed FY26 performance.
- Where
- India, with the United States and Europe identified as the largest sources of IT spending in FY25.
- Why
- Steady technology exports, AI-led digital services, policy support and continued demand from global capability centres are expected to support growth.
- 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.