Information Technology spending in India is projected to total $71.5 billion in 2013, a 7.7 percent increase from the $66.4 billion forecasted for 2012, according to Gartner, Inc. India like other emerging markets continues exercising strong momentum despite inflationary pressures and appreciation of local currencies, which are expected in rising economies.
The telecommunications market is the largest IT segment in India with IT spending forecast to reach $47.8 billion in 2013 (see Table 1), followed by the IT services market with spending of $10.3billion. The computing hardware market in India is projected to reach $9.5 billion in 2013, and software spending will total nearly $4.0 billion. Software will record the strongest revenue growth at 15 percent, IT services will grow at 12 percent. The telecom segment, which accounts for 67 percent of the Indian ICT market, is set to grow at 7 percent revenue growth in 2013:
| 2012 | 2013 | 2014 | 2015 | 2016 | CAGR (2012-2016) % | |
| Hardware | 9.1 | 9.5 | 10.9 | 12.5 | 14.3 | 7.5 |
| Software | 3.5 | 4.0 | 4.5 | 5.2 | 6.0 | 11.4 |
| Services | 9.2 | 10.3 | 11.9 | 13.8 | 16.1 | 8.9 |
| Telecom | 44.7 | 47.8 | 51.5 | 54.6 | 59.5 | 3.6 |
| Total | 66.4 | 71.5 | 78.9 | 86.2 | 95.9 | 5.3 |
What this means:
For foreign companies, which are more free to operate in India than in markets such as China, India will continue to be a good market.
