India’s IT Spend to Hit $176 Billion by 2026

India’s IT spending is projected to reach $176.3 billion in 2026, growing 10.6% from 2025 and surpassing global IT growth expectations, according to Gartner. 
 
The surge is driven by rapid investments in data centres, cloud adoption, and AI-enabled software, making India one of the fastest-growing digital markets.
Gartner analysts highlighted that Indian enterprises are accelerating cloud migration and digital transformation initiatives. 
 
The country’s data centre boom—powered by major players like Reliance and Adani—is further strengthened by evolving data privacy laws and sovereign cloud requirements, attracting global investment.
 
Software spending is expected to rise 17.6% in 2026 to $24.7 billion, fuelled by demand for AI-powered applications. 
 
Gartner predicts that by 2026, global spending on software with embedded GenAI will exceed non-AI software spending, making AI a default feature across applications.
 
India’s IT services segment is forecast to grow 11.1% in 2026, with sustained double-digit growth driven by investments in IaaS, consulting, and application modernization. 
 
The expansion of Global Capability Centres (GCCs) and access to a skilled, cost-efficient workforce continue to strengthen India’s position as a global IT hub.
 
Data centres will remain the fastest-growing segment, expected to surge 20.5% in 2026, supported by rising AI infrastructure demand and data localisation norms. 
 
With IT spend projected at $160 billion in 2025, India remains on a strong upward trajectory.