According to Crisil Ratings, the IT sector is expected to increase by single digits for the third consecutive year in FY26.

According to Crisil Ratings, the information technology (IT) services sector in India is anticipated to grow at a modest rate of 6–8% in rupee terms for the third consecutive year in FY26. This is due to ongoing macroeconomic challenges and waning demand in important countries like the US and Europe.

"Growth in the retail and BFSI segments will remain muted at 3-5 percent in fiscal 2026 due to cautious discretionary spending and slowing economic growth, following a modest recovery this fiscal year." Additionally, in the near future, IT expenditures will continue to be concentrated on cost optimization, consolidation, and efficiency improvements, according to a March 27 statement from Anuj Sethi, senior director of Crisil Ratings.

All of the main components will continue to grow slowly. The retail and banking, financial services, and insurance (BFSI) industries, which account for about 45% of total revenue, grew by just 2% in FY25 on a constant currency basis.

Sales from manufacturing and healthcare, which make up 20% of total sales, increased by a moderate 3–4%.

Due to limited discretionary spending and policy concerns, growth in these areas is predicted to stay muted at 3-5 percent in FY26, continuing the pattern.