Kochi, India: According to a latest forecast from Gartner, India’s total information-technology spending is projected to reach US$176.3 billion in 2026, representing a year-on-year growth of 10.6 %. Gartner attributes this upswing to several converging factors, from accelerated cloud and AI infrastructure investments to rising demand for data centre capacity and local data sovereignty requirements.
Driving Factors of India’s IT Spending
Here is how India’s IT spending breaks down according to key segments:
- Data centre systems: Forecast to climb from about US$7.8 billion in 2025 to US$9.4 billion in 2026 (growth of ~20.5 %).
- Software: Expected to grow by 17.6%, reaching roughly US$24.7 billion in 2026 as enterprises invest in AI-enabled applications and modernised platforms.
- IT services: Projected growth of 11.1% in 2026, driven by consulting, infrastructure-as-a-service (IaaS), application modernisation and services around global capability centres (GCCs).
- Devices: Still the largest single share of spending by volume, expected near US$66 billion in 2026 (growth ~9.9%).
Gartner points out that enterprises in India are rapidly adopting cloud and digital technologies, with AI infrastructure and data centre expansions taking centre stage. India’s appetite for local data centres is growing, as is the need for latency-sensitive infrastructure and compliance with evolving data governance norms.
The forecast suggests organisations are moving beyond experimentation and into scaling of AI/ML, modern applications and hyper-automation, which drives higher investment intensity.
This forecast signals a robust market opportunity in India. Companies offering data centre hardware, cloud services, AI/ML tooling and modern enterprise software stand to benefit.
The double-digit growth in India’s IT spending contrasts with the more moderate global growth (~9.8%) dictated in other markets. Gartner, thus, Indian tech & infrastructure plays may gain additional attractiveness.
Looking Ahead
Gartner’s forecast of India’s IT spending sets the stage for at least the next two years of activity in India’s tech ecosystem. As 2026 approaches, companies large and small will need to prioritise not just budget allocation, but capability building, governance and execution.
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