- India's IT sector added 1.35 lakh jobs in FY26, reaching 60 lakh employees
- MeitY stated the IT industry remains a net job creator despite automation fears
- AI is impacting routine IT roles but boosting demand for specialized tech jobs
Pushing back against mounting concerns over technology-driven layoffs, the government informed Parliament that India's Information Technology (IT) sector remains a net employer, adding 1.35 lakh jobs in FY26 to take the industry's total workforce to 60 lakh.
In a written reply in the Lok Sabha, the Ministry of Electronics and Information Technology (MeitY) addressed fears of artificial intelligence (AI) eroding the job market. While acknowledging that job shifts are occurring across the sector, the ministry reiterated that the broader IT industry continues to be a net job creator rather than shedding its headcount.
Citing assessments from NITI Aayog, the government noted that AI is rapidly transforming the workplace and putting routine, repetitive IT roles at risk.
Entry-level positions, particularly junior quality assurance and Level-1 IT support jobs, are bearing the brunt of this automation wave. However, the ministry emphasised that this same technological shift is actively generating demand for specialized, next-generation technology roles, which is keeping overall hiring numbers in the green.
The ministry also highlighted inputs from industry body NASSCOM regarding recent layoff concerns. According to the government, ongoing workforce adjustments and shifting headcount numbers are driven largely by broader economic and business cycles rather than a structural decline in tech employment.
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