Honestly, the Indian IT scene is unrecognizable compared to just a couple of years ago. If you’re looking for today IT news in India, you won't find the usual "hiring at scale" headlines. It’s January 16, 2026, and the industry is basically split into two parallel universes: the infrastructure is exploding, but the white-collar job security? That’s feeling a bit shaky.
Take a look at the numbers. Communications Minister Jyotiraditya Scindia just dropped a bombshell: India is now the world’s second-largest 5G user base. We’ve hit 400 million users. That’s massive. But while we’re scrolling faster than ever, the people building the software are having a rougher time.
The Brutal Reality of "Silent Layoffs" in 2026
You've probably noticed your LinkedIn feed looking a bit grim lately. It’s not just your imagination. The tech hiring slump in India has deepened as we kick off 2026. Active tech job openings have plummeted to around 1.03 lakh. To put that in perspective, we’re down 60% from the peak we saw back in early 2022.
It’s what experts are calling "silent layoffs." Companies aren't necessarily doing the big, dramatic HR exits every week. Instead, they’re just not replacing people. Or, more accurately, they’re replacing humans with "Human-AI teams."
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The TCS Anomaly
Tata Consultancy Services (TCS) is the bellwether here. Their headcount actually dropped by over 25,000 people between March and December. Yet, at the same time, they’ve managed to "upskill" 217,000 employees in AI in literally a month. It’s a weird, contradictory world where firms are desperate for AI talent but have no room for "generic" coders.
The math is kinda terrifying if you aren't prepared. Nasscom says 97% of Indian IT companies expect their workers to function as part of a human-AI duo by next year. If you aren't "treating AI as a teammate," as TCS COO Aarthi Subramanian put it, you're basically out of the game.
Silicon Sovereignty: India’s New Power Move
While the job market is tight, the "Make in India" dream for chips is finally getting some real teeth. Today, on National Startup Day, the chatter is all about semiconductors.
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- The Nvidia Connection: IT Minister Ashwini Vaishnaw has been talking with Nvidia about sovereign GPUs.
- DGX Spark: We’re seeing the rise of the "world's smallest AI supercomputer" being built and used locally for things like railways and shipping.
- The Silicon Tax: There’s a catch, though. Because global demand for AI chips is so high, memory costs for regular phones and PCs in India are spiking. Expect to pay about 7-10% more for your next mid-range smartphone because Nvidia and OpenAI are eating up all the high-end memory supply.
Why 5G is the Only Reason We’re Still Growing
If it weren’t for the 5G rollout, the IT sector might be in a total freeze. We have 4.69 lakh 5G base stations now. That’s 99.6% of the country covered. This infrastructure is the only thing keeping the $350 billion revenue target for 2026 alive.
We’re moving from "Digital India" to "Intelligent India." It sounds like a marketing slogan, sure, but it means real-time AI in our traffic lights, our airports, and our hospitals. The money is flowing into "Edge Computing" and "Zero Trust" cybersecurity, not into hiring 5,000 freshers to do manual testing in Bengaluru.
The Shift to Tier-2 Cities
Here’s something most people get wrong: they think the IT heart is still just in HSR Layout or Hi-Tech City. Nope. Hiring in tier-2 and tier-3 cities like Udaipur, Vizag, and Nagpur grew by over 50% recently. Meanwhile, the big metros are seeing a sharp decline.
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Companies are chasing two things: lower costs and people who haven't been "AI-displaced" yet. If you're a developer in Coimbatore, you're actually in a better spot today than someone in a flashy North Bangalore office facing a 30% "skill mismatch" redundancy.
What You Should Actually Do Now
If you’re working in Indian IT or trying to get in, the "just learn to code" advice is dead. It’s buried. Here is the move:
- Stop being a generalist. Generic Java or Python skills are being commoditized by AI agents. You need "Enterprise-grade AI" skills—think governance, orchestration, and scalability.
- Follow the hardware. The India Semiconductor Mission (ISM) is pumping ₹76,000 crore into the ecosystem. Chip design and specialized semiconductor roles are the few areas where VCs are still opening their wallets.
- Look at GCCs. Global Capability Centers are the "rare bright spot" in hiring right now. They grew 13% month-on-month because global firms want their own captive units in India rather than outsourcing to the big traditional players.
- Master the "Human-AI" workflow. Don't just use ChatGPT to write an email. Learn how to integrate LLM APIs into legacy architecture. That’s the only way to avoid the "silent layoff" list.
The IT industry in India isn't dying; it's just becoming incredibly picky. The "Intelligent India" era is officially here, and it doesn't have much patience for the old way of doing things.