IT spending in India is projected to grow by 11.1 percent in 2025, up from 9.8 percent in 2024, reaching $161.511 billion from $145.386 billion.
CIO budgets are increasing, though much of this will offset price hikes, with Gartner not specifying price increases by segment. Enterprises are prioritizing AI-ready infrastructure, particularly accelerated servers for AI workloads, driving significant growth in this segment.
“Enterprises are investing in AI-ready infrastructure for targeted use cases,” said Naveen Mishra, VP Analyst at Gartner. “The emphasis on accelerated servers for AI workloads is a significant driver, resulting in increased end-user spending in this segment in 2025 compared to the previous year.”
In India, spending on Data Center Systems will reach $ 5.013 billion in 2025 from $ 4.210 billion in 2024. The expected growth in Data Center Systems market in India will be 19.1 percent in 2025 vs 10.3 percent in 2024.
Spending on devices will reach $ 62.516 billion in 2025 from $ 55.486 billion in 2024. The anticipated growth in devices market will be 12.7 percent as compared with 12.2 percent in 2024.
Spending on Software will reach $ 20.909 billion in 2025 from $ 17.893 billion in 2024. The expected growth in Software market will be 16.9 percent in 2025 as against 15.6 percent in 2024, driven by GenAI-enabled solutions.
Over 50 percent of application software spending will be influenced by GenAI by 2026, as enterprises invest in tools for AI deployment, management, and scaling.
Spending on IT Services will reach $ 33.489 billion in 2025 from $30.124 billion in 2024. IT Services market will grow at 11.2 percent in 2025 as compared with 9 percent in 2024, supported by cloudification, digitization, and consulting needs..
Spending on Communications Services will reach $ 39.585 billion in 2025 from $ 37.672 billion in 2024. Communications Services will be growing at 5.1 percent in 2025 against 4.7 percent in 2024.
Rajani Baburajan
