India’s technology spending will inch down to 13.4 per cent for 2026, from 13.7 per cent a year ago, according to a report by Forrester.
As Asia Pacific’s fastest-growing market, India is being propelled by rapid cloud adoption and data localisation rules that are driving major onshore infrastructure investment. Software investment is also rising as vendors embed AI capabilities into renewal pricing, while domestic enterprise demand continues to be the primary driver of India’s double-digit tech spending growth.
While the overall spend may dip, it will still be the second-highest in Asia, with Vietnam topping the list at 15.4 per cent. The major economies of China, Singapore and Australia’s tech spending will be 10.7 per cent, 6 per cent and 8.6 per cent, respectively.
“India’s double-digit technology spending growth is being propelled by a combination of cloud acceleration, regulatory clarity, and strong domestic demand,” said Ashutosh Sharma, vice-president and research director at Forrester. “With data localisation shaping infrastructure strategies and enterprises expanding AI-ready platforms, the priority now is to digitise processes beyond core systems and build scalable data foundations. CIOs that balance compliance requirements with investments in automation and AI-enabled capabilities will be best positioned to capture this next phase of growth.”
The DPDP Rules 2025 mandate data residency for significant data fiduciaries, spurring data centre growth of more than 20 per cent in the next year. GCC expansion and government digital programmes are also expected to provide additional momentum.
The average IT salary in APAC will rise by about 5 per cent in 2026, outpacing inflation. Tech salaries will jump by nearly 10 per cent in India, the highest in the region, thanks to strong IT spending growth.
