According to The Economic Times, Srikanth Velamakanni said on April 27, 2026, that AI in Indian IT sector will drive growth, not job losses, as companies adopt enterprise AI and adjust hiring patterns across India, while industry revenue moves toward the $300 billion mark.
What changed in AI in Indian IT sector
AI in Indian IT sector is reshaping how companies operate and hire talent. Firms now integrate AI into workflows, which reduces manual effort but increases output.
As a result, companies focus more on efficiency. At the same time, hiring strategies shift toward skills linked to enterprise AI and automation. This marks a transition from traditional IT services to AI-led operations across industries.
Why AI is a growth catalyst for Indian IT sector
New demand is emerging across business functions. Every workflow now requires digital integration, which increases the need for AI-driven solutions.
Although AI reduces human effort in some tasks, it increases the scale of work. Therefore, companies require more advanced skills and larger tech deployments.
The industry sees this shift as a multi-trillion dollar opportunity driven by enterprise AI adoption.
Impact on hiring and workforce trends
AI in Indian IT sector has slowed hiring in the short term. Companies now need fewer people for repetitive tasks due to automation.
However, hiring continues in new areas. For example, firms plan to recruit freshers as demand for enterprise AI grows. This shows a shift in hiring patterns rather than a decline in long-term job creation.
Industry growth and future direction
Nasscom estimates show the industry may reach $300 billion in revenue in FY 2026, up from about $282 billion in FY 2025. This reflects steady expansion despite short-term hiring changes. Leaders also highlight a “compression and expansion” trend. Individual tasks become cheaper, but overall demand for tech solutions increases sharply.
Companies now focus on resilience as global uncertainties affect decision timelines. However, operations continue to align with AI-led transformation.
