IT Sector in India Expects AI-Driven Rebound After Subdued Fiscal Year
After a slow FY26, India’s IT sector plans for a recovery led by AI and automation, aiming to boost efficiency and competitiveness as technology investments rise.
India’s IT Services Industry Projects Subdued FY26 Growth, Eyes AI-Led Revival Ahead
India’s IT services sector is bracing for a period of restrained growth in FY26, as global market volatility and shifting client priorities weigh on expansion. Despite the industry’s proven resilience, factors such as cautious enterprise spending on digital transformation, inflationary pressures, and conservative hiring plans have led to subdued forecasts.
Industry leaders, however, remain optimistic about a rebound in the following fiscal year. Artificial intelligence platforms and automation are expected to play a pivotal role in reshaping service delivery, unlocking efficiency gains, and opening new avenues for contract growth. The adoption of AI-powered tools, from process automation to generative applications, is projected to drive fresh momentum across core business lines.
In preparation, IT firms are stepping up investments in cloud, data analytics, and cybersecurity, aiming to strengthen their positioning for the next growth cycle. Industry bodies have also urged businesses to proactively upskill employees and accelerate AI integration, underscoring the urgency of adapting to fast-evolving technologies.
With innovation and reinvestment returning as central themes, experts predict India’s IT industry is set to renew its traditional role as a global technology hub.
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