India's Technology Spending To Rise by 10.8% in 2024

CIOTechOutlook Team | Tuesday, 11 June 2024, 11:53 IST

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Technology spending in India is expected to rise by 10.8% to approximately $54.5 billion in 2024, making it the most highest region in Asia Pacific (APAC), as per Forrester report. The report titled "Asia Pacific Tech Market Forecast, 2023 To 2027," a global market research firm, spending on AI-augmented software and services will outpace spending on other IT categories.
 
“Estimated to reach ₹4,492 billion (approximately $54.5 billion) in 2024, India’s domestic tech economy continues to enjoy strong growth due to an all-round digitization push from the central and state governments,” the report stated.
 
It uncovered that innovation spending in APAC will stay strong and develop by a compounded annual growth rate (CAGR) of 6.4% to 7.4% each year from 2024 to 2027, coming to $876 billion in 2027.
 
“Over the next few years, software spending will continue its rapid growth, followed by spend on IT services, communications equipment, and computer equipment. The share of software purchases will climb from 26.4% in 2024 to 30% of total tech spend in 2027, outpacing the other IT categories due to demand generated by AI and AI-augmented enterprise software and services,” the report added.
 
According to the report, spending on technology is likely to reach approximately $261.9 billion in China (7.2%), $18 billion in Singapore's Silicon Valley, $49 billion in Australia, and 8.1% in the rest of Southeast Asia.
 
“While challenges such as regulatory environments, global economic conditions, and talent shortages in the region present hurdles, overall, the APAC market is well-positioned for tech growth,” said Leslie Joseph, principal analyst at Forrester.
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