India’s IT Spending to Surge by 11.1% in 2025, Led by AI and Cloud Investments

 India’s IT spending is projected to grow by 11.1% in 2025, reaching $161.5 billion, as enterprises increase investments in AI-enabled infrastructure, cloud adoption, and software solutions. This reflects the nation’s push toward digital transformation and leveraging advanced technologies to remain competitive in the global market.

The data center systems segment in India is poised for a 19.1% growth, doubling its momentum from 2024. Enterprises are focusing on AI-optimized servers to enhance workloads, contributing significantly to the overall IT growth. Globally, spending on AI-ready servers is expected to hit $202 billion, reflecting a shift in enterprise IT priorities.

In India, software spending will grow by 16.9%, while IT services spending will increase by 11.2%. The demand is fueled by enterprises adopting cloudification, AI tools, and consulting services to streamline operations and drive innovation. GenAI-enabled applications are becoming a key focus, with over half of software spending projected to be influenced by AI by 2026.

These trends underscore the increasing importance of AI and cloud technologies in shaping the future of IT. Enterprises are expected to allocate budgets strategically, ensuring robust infrastructure to support evolving business needs while maintaining cost efficiency.