Stable Outlook: Modest Growth Foreseen for Indian IT Services in 2025-26
ICRA anticipates 2-3% growth for the Indian IT services industry in FY2026, grounded by US tariff-related uncertainties. The sector's earnings momentum may remain subdued, despite advances in AI. Hiring is expected to align with technology trends, while the India-UK FTA offers potential workforce mobility benefits.
- Country:
- India
The Indian IT services industry can anticipate stable yet modest growth, with a projected 2-3% revenue increase in US dollar terms for the fiscal year 2025-26, according to credit rating agency ICRA.
This analysis, based on 15 leading companies that account for about 60% of the industry's revenue, comes amid lingering uncertainties tied to US tariff impositions.
The sector, rooted in markets dominated by the US and Europe, faces challenges such as low hiring rates and changing technology landscapes, though the India-UK Free Trade Agreement provides new workforce opportunities.
- READ MORE ON:
- ICRA
- Indian IT services
- US tariffs
- AI
- GenAI
- hiring
- India-UK FTA
- TCS
- Infosys
- HCL
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