New Delhi: India’s IT spending is anticipated to achieve $176.3 billion in 2026, up 10.6 per cent on-year, pushed by accelerating adoption of cloud and digital applied sciences, a report stated on Tuesday. The information heart methods section is projected to document the very best annual development fee, rising 20.5 per cent in 2026 to $9,385 million. Evolving knowledge privateness and sovereign cloud necessities are anticipated to drive development on this section by means of 2026, the report from Gartner stated.
“Information heart methods spending is primarily pushed by substantial AI infrastructure investments and a number of authorities applications geared toward strengthening the native AI ecosystem,” stated Naresh Singh, Senior Director Analyst at Gartner.
“Because the uncertainty pause that started earlier this 12 months eases, rising demand for AI infrastructure will gas new funding in knowledge facilities in India,” stated DD Mishra, VP Analyst at Gartner.
Mishra stated that native CIOs will proceed to prioritize investments in cybersecurity, AI/ML and knowledge analytics. Their ongoing dedication to modernizing purposes, strengthening connectivity, implementing hyper-automation, enhancing buyer expertise, and operational effectivity will propel IT spending development, he stated.
Software program spending is projected to develop 17.6 per cent to $24.7 billion as enterprises ramp up funding in AI-enabled software program options and trendy IT infrastructure.
IT companies spending is ready to develop 11.1 per cent in 2026, with double‑digit development projected over the following few years, pushed by sturdy enterprise investments in infrastructure as a service (IaaS), consulting, and software modernisation.
The Gartner report stated the fast development of world functionality facilities (GCCs) and entry to a extremely expert, cost-effective workforce will drive the sector’s development. Gadgets spending is anticipated to rise 9.9 per cent to $66,442 million, whereas communications companies will develop 5.4 per cent to $40,414 million, the report famous.

