India’s IT spending is set to cross the $176 billion mark in 2026, marking a 10.6% year-over-year increase, according to new forecasts from Gartner, Inc. The surge underscores the country’s rapid digital acceleration and growing demand for artificial intelligence (AI) and cloud-based infrastructure.
“Enterprises across India are scaling up their investments in cloud, AI, and data infrastructure following a year of economic recalibration,” said DD Mishra, VP Analyst at Gartner. “As the post-uncertainty rebound gains momentum, AI infrastructure will become a primary engine of IT investment.”
The data center systems segment is poised for the highest growth, up 20.5% in 2026, driven by local AI investments and national initiatives aimed at strengthening sovereign cloud capabilities. India’s expanding AI consumer base and evolving data privacy laws are attracting a new wave of international investors focused on establishing local infrastructure.
Software spending is forecast to grow 17.6%, reaching nearly $24.7 billion, as generative AI (GenAI) becomes a built-in standard across enterprise applications. By 2026, Gartner forecasts that global spending on GenAI-enabled software will surpass non-AI software.
Meanwhile, IT services are projected to climb 11.1%, fueled by strong enterprise uptake of infrastructure-as-a-service (IaaS), consulting, and application modernization. The continued rise of Global Capability Centers (GCCs) and India’s skilled, cost-effective workforce are expected to sustain double-digit growth in the coming years.
CIOs and technology leaders are expected to prioritize cybersecurity, AI/ML, hyper-automation, and data analytics in 2026, emphasizing resilience and governance. Gartner analysts suggest that India’s IT spending is moving from volume-driven expansion to a more strategic model focused on data sovereignty, AI scalability, and operational intelligence.
“India’s position as an AI powerhouse is no longer speculative,” said Naresh Singh, Senior Director Analyst at Gartner. “With policy alignment, talent depth, and a robust digital foundation, the country is emerging as a blueprint for intelligent infrastructure growth.”
These insights were shared at the Gartner IT Symposium/Xpo™ India — the region’s premier gathering for CIOs and technology executives. The annual event brings together global thought leaders and innovators to explore the trends shaping the AI economy, digital acceleration, and the evolving role of the CIO in driving enterprise transformation.
In 2025, the Symposium highlighted how organizations can harness the “Intelligence Supercycle” — a shift driven by AI, analytics, and automation — to redefine decision-making, customer experience, and IT governance strategies for the decade ahead.
Gartner’s findings are based on detailed sales data from over 1,000 global vendors, offering a holistic view of India’s IT ecosystem across hardware, software, services, and telecommunications. The forecast reflects the nation’s transition from a technology consumer to a strategic innovation hub driving digital transformation across global markets.
About Gartner:
Gartner is a global research and advisory firm that provides data-driven insights and advice to leaders in technology and other business functions like finance, HR, and sales. It helps clients make strategic decisions through its research, conferences, and consulting services, using tools like the Gartner Hype Cycle and Magic Quadrant. Founded in 1979, Gartner is a publicly traded company listed on the New York Stock Exchange (NYSE: IT) and is headquartered in Stamford, Connecticut. . More information available at gartner.com.