The IT sector has emerged as one of the fastest-growing industries globally, driven by digital transformation, artificial intelligence, and cloud computing. In India, the industry is projected to cross $315 billion by 2026, reflecting its pivotal role in employment generation and innovation. Alongside technological advances, the financial architecture of IT firms is evolving, with capital structure decisions becoming increasingly strategic. NASSCOM projects that enterprise Artificial intelligence industrialisation and datacentre expansion will significantly redefine capital requirements in the Indian IT sector. The report stresses that capital structure decisions are becoming central to long-term sustainability, as firms must align financial strategies with innovation-led growth and global market demands. This chapter examines the latest developments in IT industry growth and their different components of capital structure.
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