India, Feb. 24 -- India's IT sector is expected to grow in the high single digits in the ongoing fiscal and the next, even as AI threatens to structurally rework the industry itself.

Revenue of the IT services industry is likely to grow at 6.1% year-on-year to $315 billion in 2025-26, with a similar quantum of growth expected next fiscal, industry body Nasscom said on Tuesday. That growth will be driven by AI-led services as well as business at global capability centres. In FY24, the sector delivered a top line of $297 billion as against $283 billion estimated earlier.

The IT services industry is facing a double whammy of sorts, that of tepid demand and threats of disruption from AI tools. A selloff in Indian IT stocks has wiped out out...