India`s IT sector adds 1.35 lakh jobs in FY26, remains net hirer amid AI fears
India’s information technology sector (IT) remained a net employer in FY26, adding around 1.35 lakh jobs, the government told the Parliament on Wednesday.
The job growth counters the general fear that automation and artificial intelligence (AI) are causing widespread layoffs.
In a written reply, the Ministry of Electronics and Information Technology (MeitY) said in the Lok Sabha that the industry’s total workforce stood at 60 lakh at the end of FY26 after substantial surge during the fiscal.
Citing assessments from policy think?tank NITI Aayog, the ministry acknowledged that AI and automation were causing widespread restructuring within the sector and that some routine, repetitive positions were at risk.
The ministry said entry?level roles such as junior quality assurance and Level?1 IT support were most exposed to automation but added that the technology shift was also creating demand for specialised, next?generation roles that supported overall hiring.
Industry body Nasscom had earlier said that major workforce adjustments reflect changing business models and cyclical factors rather than a structural decline in tech employment.
A recent report said that nearly 30 per cent of Indian workers felt their jobs are secure, placing India third globally and highest in the Asia Pacific region, in job security.
Across APAC, only 18 per cent of respondents felt that their jobs are safe, the report from ADP Research said.
In India, job security sentiment varies significantly by job type. Knowledge workers (37 per cent) are approximately twice as likely to report confidence compared to skilled tasks (18 per cent) and repetitive task workers (17 per cent).
Generative AI is not causing widespread job displacement in India’s IT sector but is reorganising work, raising productivity and shifting demand toward hybrid skill sets, another recent report had said.
