India's IT spending to hit US$ 176 billion in 2026 on data centre, AI boom: Gartner
- IBEF
- November 19, 2025
India’s information technology (IT) sector is poised for robust growth, with total IT spending expected to reach Rs. 15,61,665 crore (US$ 176.3 billion) in 2026, a rise of 10.6% over 2025, according to Gartner, Inc., a global research and advisory firm. The surge is primarily driven by strong investments in data centres and software. The data centre systems segment is projected to record the highest annual growth, expanding 20.5% in 2026, as enterprises accelerate adoption of cloud and digital technologies. Rising demand for artificial intelligence (AI) infrastructure, coupled with data localisation norms, is expected to further strengthen India’s IT ecosystem and attract international investment in local infrastructure.
Software spending is forecast to increase 17.6% to Rs. 2,18,793 crore (US$ 24.7 billion), driven by AI-enabled applications and modern IT infrastructure, while IT services are expected to grow 11.1% in 2026, with sustained double-digit growth of 12-14% over the coming years. The rapid expansion of global capability centres and access to a highly skilled, cost-effective workforce are set to further enhance India’s position as a hub for digital transformation. According to the Vice President and analyst at Gartner, Mr. D. D. Mishra, enterprises’ focus on infrastructure-as-a-service, consulting, and application modernisation will continue to propel the sector. At the same time, evolving technologies such as generative AI will become embedded across software platforms, shaping the next phase of India’s IT investment landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
