Ahead of the India AI Impact Summit 2026, NITI Aayog has urged a fundamental restructuring of India’s technology services industry around artificial intelligence (AI), warning that the current labour-intensive model will not sustain global competitiveness.

In its 10-year roadmap titled ‘Technology Services – Reimagination Ahead’, the think tank says the sector must transition to outcome-based, intellectual property (IP)-led and platform-driven delivery models to achieve a revenue target of $750-850 billion by 2035.

According to NITI, India’s technology services industry, currently valued at around $265 billion and contributing 7 per cent to gross domestic product (GDP), is already facing a growth slowdown of 4-5 per cent due to AI-driven automation and broader macroeconomic shifts.

According to the report, AI represents a fundamental shift in value creation. Instead of relying primarily on headcount-based revenues, firms will need to focus on building intellectual property, delivering measurable outcomes and developing platform-led solutions. This transition presents India with an opportunity not just to remain a global services hub, but to emerge as a leader in creating AI-native systems and high-value digital solutions.

Companies that fail to adapt risk being confined to low-margin service segments, the report warns. NITI Aayog places the technology services sector at the centre of India’s broader economic ambitions. Its evolution, the report notes, will be critical to meeting long-term growth and employment objectives.

 The roadmap also highlights mounting external pressures, including geopolitical fragmentation, data localisation mandates and changing client expectations. These dynamics strengthen the case for diversification, resilience and innovation-led growth.