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The growth of the IT service sector may remain moderate in the next financial year. Credit rating agency ICRA has estimated this. According to the agency, the revenue may see moderate growth of 4 to 6 percent in the next financial year i.e. 2025-26. Along with this, there are estimates that recruitment activities in the IT sector may also remain limited by the end of the financial year. At the same time, ICRA estimates that due to the ongoing uncertainties and policy changes around the world, the rate of attrition in the sector may remain around 12 to 13 percent in the short term.
What are the highlights of the agency's report?
The agency has estimated, based on the top Indian IT companies that account for 60 per cent of the sector's revenue, that FY26 may see a revenue growth of 4 to 6 per cent in dollar income. Recruitment is expected to remain low until growth in the sector increases, according to the agency, this growth can be seen in the second half of FY26. US President Donald Trump's move on tariffs, the direction of interest rates, increasing uncertainty in the global market due to policy changes in important markets like the US and Europe may affect the growth of the sector. Investments in Generative AI (GenAI) are gaining momentum in new deals. Out of this, opportunities are also seen in the BFSI and healthcare sectors.
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