India’s IT Expenditure Set to Reach $44 Billion in 2024: What’s Driving this Growth?
IT spending in India is projected to increase by 11% year-on-year, reaching $44 billion in 2024, as per a recent report by International Data Corporation (IDC).
Despite economic challenges in 2023, Indian enterprises continued to invest in digital technologies to enhance customer engagement, launch new products, and improve operational efficiency.
India IT spend will drive digital innovation, business growth, digital economy, investment in AI (Artificial Intelligence)
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The focus of these investments was mainly on software, application development, and cloud migrations, indicating a strategic approach by businesses to maximize the lifespan of their hardware assets. According to Vasant Rao, Managing Director of IDC India and South Asia, the shift to digital among Indian companies is evident as they move towards an AI-driven future.
India Digital economy and Business Growth
As India’s digital economy continues to grow, IDC predicts a compound annual growth rate (CAGR) of 9.9% in IT spending in India, surpassing $59 billion by 2027. The software market is expected to experience double-digit growth consistently over the forecasted years.
GenAI, or Generative AI, is expected to drive AI adoption in India, with investments projected to represent 26% of overall AI spending by 2027.
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Steven Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director (EMEA) at IDC, anticipates a 6% expansion in global ICT spending in 2024, driven by increased investment in automation and generative AI. This growth reflects a new era of digital innovation despite economic uncertainties.
The COVID-19 pandemic accelerated digital transformation across industries in India, prompting businesses to adopt remote working solutions, cloud services, and digital collaboration tools.
This shift towards digitalization is expected to continue, with investments in cybersecurity, data analytics, and artificial intelligence becoming critical for organizations to remain competitive and resilient in a rapidly evolving business landscape.
Furthermore, the Indian government’s initiatives such as Digital India and Make in India have played a significant role in driving IT spending in the country.
Public sector organizations are increasingly investing in digital infrastructure and services to improve governance, enhance service delivery, and promote economic growth.
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In conclusion, India’s IT Expenditure Set to Reach $44 Billion in 2024: What’s Driving this Growth? the outlook for IT spending in India remains positive, with a strong focus on digital technologies, software, and AI-driven solutions.
As businesses continue to prioritize digital transformation to drive innovation and efficiency, IT spending is expected to grow steadily, positioning India as a key player in the global digital economy.
