Indian tech CEOs see stronger FY26; AI spend up, hiring outlook improves

Despite global economic uncertainties, Indian tech CEOs are entering 2025 with cautious optimism, bolstered by steady client spending and increased investment in artificial intelligence (AI), according to Nasscom’s CEO Survey 2025.

The survey reveals that 77% of CEOs anticipate higher business growth in FY26, while 85% expect client tech spending to remain stable or increase compared to FY25.

AI investment remains a key priority, with 63% of tech CEOs allocating more than 10% of their overall tech budgets to AI-driven initiatives.

Rajesh Nambiar, President of Nasscom, highlighted the pivotal role of upskilling in sustaining growth. “India’s tech skill intensity will be a critical driver of future growth. While the CEO outlook for FY26 remains measured yet positive, with increased tech and AI spending, sustaining the growth momentum requires a strategic vision,” he said.

The hiring outlook is also improving, with 45% of CEOs foreseeing better recruitment conditions than FY25. However, skill development in niche and core tech areas remains crucial to capitalising on these opportunities.

India’s tech industry is poised to cross $300 billion in revenue by FY26, driven by AI investments and digital transformation. Nasscom’s latest CEO survey reflects cautious optimism despite global headwinds.