New Delhi
India’s IT expenditure may increase rapidly in the coming times. According to a latest report on Tuesday, India’s IT spending is estimated to reach $160 billion in 2025, which represents an increase of 11.2 percent from 2024. According to a report by Gartner, India is projected to record the highest annual growth rate in software spending, increasing by 17 percent in 2025, due to the growth of both application and infrastructure software markets.
“In 2025, Indian chief information officers (CIOs) will start allocating budget for generative AI (GenAI) beyond initial proof-of-concept projects,” said Naveen Mishra, VP analyst at Gartner. “Spending on GenAI will increase, but the expectations of Indian chief information officers about its capabilities will decrease,” he said. Additionally, Indian CIOs are likely to spend more on technologies like cybersecurity, business intelligence and data analytics in 2025 than in 2024.
Price premium of GenAI-enabled offerings in customer relationship management, email-authoring and analytics platforms will drive software spend, thereby driving growth in this segment. By 2025, more than 50 percent of applications with GenAI capabilities will command a software price premium. Pricing options will also continue to rise through 2025 as buyers express their desire for a GenAI premium.
Despite spending cautiousness in the global services market, economic uncertainty and high capital costs, IT services spending in India is projected to grow by 11.4 percent in 2025. According to the report, “Cloud, application and consulting services will strengthen. “At the same time, the focus will be on improving labor productivity in 2025 (and beyond).”
Spending on data center systems in India is projected to total $4.7 billion in 2025, driven by the need for enterprises to build new infrastructure for Artificial Intelligence (AI) integration.
