Gartner(US:IT) Rediff·2025-11-19 06:41Core Insights - India's information technology (IT) spending is expected to reach $176.3 billion by 2026, reflecting a growth of 10.6% from 2025, surpassing the global growth rate of 9.8% [1][3] IT Spending Growth - For 2025, India's IT spending is projected to grow by 11.2%, reaching $160 billion [3] - The data centre segment is anticipated to have the highest annual growth rate, increasing by 20.5% in 2026, although this is a moderation from 29.2% in 2025 [4][5] Drivers of Growth - The growth is driven by increased investments in data centres and software, as enterprises accelerate their adoption of Cloud and digital technologies [5] - Rising demand for artificial intelligence (AI) infrastructure is expected to stimulate new investments in data centres [6] - Data localisation norms are also contributing to the growth, with major players in the data centre segment expanding their operations [7] Key Players and Market Dynamics - The entry of significant players like Reliance and the Adani group is propelling India's data centre growth [8] - India is recognized as having one of the largest consumer bases for AI services globally, attracting international investments in local infrastructure [8] Software and IT Services Growth - Software spending in India is projected to increase by 17.6% in 2026, reaching $24.7 billion, driven by investments in AI-enabled software solutions [8][9] - IT services spending is forecasted to grow by 11.1% in 2026, with double-digit growth expected in the coming years, averaging between 12% and 14% [11] - The growth momentum is supported by strong enterprise investments in infrastructure as a service (IaaS), consulting, and application modernization [12]