According to a report by Gartner, India’s overall IT spending is expected to grow by 11.1 per cent to $161.5 billion in 2025 from $145.4 billion in 2024, which grew by 9.8 per cent from 2023.
Although this forecast reflects a slight decrease from Gartner’s earlier estimate of 11.2 per cent, the absolute spending figure has been revised upward from an earlier projection of $160 billion for 2025. In contrast, global IT spending is expected to grow by 9.8 per cent, reaching $5.61 trillion in 2025, compared to $5.11 trillion in 2024.
As per the report, key contributors to India’s IT spending growth include software and IT services, with anticipated increases of 16.9 per cent to $17.9 billion and 11.2 per cent to $30.1 billion, respectively, in 2025. Additionally, spending on data centre systems is forecasted to grow significantly, with a projected increase of 19.1 per cent to $5 billion, up from $4.2 billion last year when it experienced a growth of 10.3 per cent.
Further, the report attributes this surge in global IT spending to the rapid advancement of generative AI (GenAI), predicting that it will surpass $7 trillion within four years as enterprises invest heavily in AI-ready infrastructure and solutions.
