ICRA Sees 2–3 per cent Growth for IT Sector in FY26

04 Jul 2025 CW Team

Credit rating agency ICRA has maintained a stable outlook for the Indian IT services industry, projecting a modest revenue growth of 2–3 per cent in US dollar terms for FY2025–26. This is slightly below the 2.9 per cent growth recorded in FY2024–25.

The forecast is based on an analysis of 15 leading IT firms, including TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra, which together account for nearly 60 per cent of the industry's revenue. Despite recent gains in operating income, the sector’s earnings momentum is expected to remain weak due to uncertainties stemming from the recent imposition of US tariffs.

According to ICRA, the US and Europe continue to dominate the revenue share of Indian IT services firms, comprising 80–90 per cent of total industry turnover. These regions showed moderate performance throughout FY25, with a slight contraction in the final quarter. The outlook for Q1 FY26 remains cautious, as tariff-linked uncertainty may delay IT spending in key markets.

Hiring activity in the sector is also likely to stay muted until demand conditions improve. However, demand for skilled professionals in areas like artificial intelligence (AI) and generative AI (GenAI) is expected to influence future recruitment plans, particularly in the latter half of the year.

ICRA also pointed to the India–UK Free Trade Agreement (FTA) as a potential positive development. The agreement includes a key provision exempting Indian employees and their UK-based employers from paying social security contributions for up to three years. Though the direct financial impact may be limited, the exemption is expected to enhance workforce mobility and strengthen business ties between the two nations.

Overall, while the Indian IT sector remains resilient, headwinds from global economic conditions and shifting trade dynamics are likely to keep near-term growth in check.

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..