How India Inc’s digital spending pie looks like

Indian companies are undergoing a digitisation drive across sectors and that has created a multi-billion-dollar annual shopping list resulting in a big opportunity for tech vendors operating in the country.

Indeed, the total spending on digital technologies pegged at ₹22.58 trillion or approximately $268 billion is half of the total IT spending in the country, as per information collated by tech sector database Sales Edge, a sister concern of Techcircle.

The data that captures information on digital spending by 96,500 Indian companies, ranging from small enterprises to large conglomerates across sectors such as banking, financial services and insurance (BFSI), infrastructure, and media among others, shows how the overall pie is distributed.

Key technologies driving these investments include cloud computing, artificial intelligence (AI), analytics, next-generation security solutions, Internet of Things (IoT), enterprise mobility, Augmented reality and virtual reality (AR/VR), blockchain, and environmental, social, and governance (ESG) initiatives.

A third of the total is allocated for cloud technologies. AI and cybersecurity are next on the chart, each accounting for approximately 14% of digital investments in FY24.

Supporting this momentum, the Union Cabinet in July approved the India AI Mission with an outlay of ₹10,372 crore. As noted by the Ministry of Electronics and IT, this initiative marks a pivotal step in advancing the nation’s AI ecosystem. A key component of the mission is the development of a scalable, high-performance AI computing infrastructure featuring 10,000 or more GPUs. Built through a public-private partnership, this infrastructure aims to support India's growing startup and research communities, fostering innovation and technological advancement.

IoT, enterprise mobility and analytics are the next in line attracting investments, followed by other verticals.