Indians are expected to spend nearly $94 billion on IT next year, up a hefty 6.6 per cent over the 2019 sum of $88.5 billion, a report by market research firm Gartner said late on Sunday.
According to the report, while software technologies will see a maximum growth of 15.2 per cent, IT devices are expected to see the highest spending estimated at over $35 billion.
“2020 will be a rebound year for India’s IT spending as consumers return to purchasing mobile phones after sitting on the sidelines,” said John-David Lovelock, Research Vice President at Gartner.
Apart from software and devices, India will escalate its investments in data centre systems, IT and communication services.
“In mid-2019, the Indian government introduced corporate tax cuts, along with policies that were aimed at reviving the economy and bolstering consumer spending. As a result, corporate spending in software and services saw an uptick and organizations continued to invest in cloud, analytics, digital and automation,” said Arup Roy, Research Vice President at Gartner.
The report notes that consumer resistance to investing in devices in 2019 impacted overall IT spending in the country.
However, earlier in October, a report by research firm Counterpoint said India defied the cloudy economic climate in the country with smartphone shipments hitting a new record high of 49 million units during the third quarter of 2019.
Smartphone shipments grew by 10 per cent in India during the third quarter of 2019, driven by new product launches and special discounts.
Currently, the Indian economy is going through a sluggish phase, with GDP growth the slowest in over six years, in the face of a sharp deceleration in consumer demand and lukewarm investments.
Prime Minister Narendra Modi aims to transform India into a $5 trillion economy by 2025.