New Delhi, July 24 -- The Indian Information Technology (IT) sector is likely to see flat revenue growth of 0 to 2 per cent year-on-year in the current financial year (FY26), according to a recent report by CareEdge Ratings.

The slowdown is mainly due to continued macroeconomic uncertainties and cost pressures affecting client spending across sectors.

It stated, "The Indian IT sector is expected to witness a flat revenue growth of 0 to 2 per cent in FY26 as compared to the previous year in terms of constant currency revenue growth."

The report highlighted that the IT industry has been witnessing muted growth, with clients delaying or deferring discretionary projects. While the demand environment remains weak, a healthy deal pipeline of...