India’s IT landscape is poised for unprecedented growth, with Gartner forecasting spending to reach $160 billion in 2025, marking an 11.2% increase from 2024. The surge is primarily driven by Generative AI adoption, with software spending leading the charge at a projected 17% growth. Despite global economic uncertainties, IT services are expected to grow by 11.4%, fuelled by cloud computing and consulting services.
Indian CIOs are moving beyond experimental phases with GenAI, focusing investments on practical implementations alongside cybersecurity and data analytics. The data centre segment is set to reach $4.7 billion as companies scale up their AI-ready infrastructure. This shift is particularly notable in software platforms, where Gartner predicts over half of GenAI-enabled applications will command premium pricing by 2025, signalling a mature market ready to pay for advanced AI capabilities.
