India ICT Market Size, Share, Trends and Forecast by Spending, Technology, and Region, 2026-2034

India ICT Market Overview:

The India ICT market size reached USD 99,210.08 Million in 2025. The market is projected to reach USD 1,95,431.59 Million by 2034, exhibiting a growth rate (CAGR) of 7.82% during 2026-2034. The market is driven by government-led digital infrastructure expansion through initiatives like BharatNet and the National Broadband Mission, which are establishing comprehensive broadband connectivity across urban and rural areas. Furthermore, the IndiaAI Mission is democratizing access to advanced computing infrastructure, enabling startups, researchers, and enterprises to develop indigenous AI capabilities. Additionally, enterprises across sectors are accelerating their digital transformation journeys through adoption of cloud computing, artificial intelligence, and IoT technologies, fundamentally reshaping operational models and service delivery approaches. These initiatives are collectively expanding the India ICT market share.

India ICT Market Trends:

Government-Led Digital Infrastructure Expansion Through BharatNet and National Broadband Mission

The Indian government has undertaken one of the world's most ambitious rural broadband connectivity initiatives through BharatNet, fundamentally transforming digital infrastructure across the nation. This initiative aims to provide high-speed optical fiber connectivity to all gram panchayats and villages, ensuring that rural communities gain access to essential digital services in education, healthcare, governance, and economic opportunities. The National Broadband Mission complements this effort by targeting universal broadband access with speeds of at least 50 Mbps for every citizen by establishing state-of-the-art digital communication infrastructure including fiber networks and mobile towers. As of December 2025, Phase I and Phase II of BharatNet had collectively connected over 214,000 gram panchayats through 692,299 kilometers of optical fiber cables, 1.17 million FTTH connections, and 104,000 Wi-Fi hotspots. The substantial progress demonstrates the government's commitment to bridging the digital divide, with the Union Budget 2025-26 allocating Rs 22,000 crore for continuing this infrastructure expansion. These initiatives have resulted in dramatic improvements in connectivity metrics, with median mobile broadband speeds surging from 10.71 Mbps in 2020 to 144.33 Mbps in February 2025, while internet subscribers in rural areas increased from 115.06 million in FY16 to 405.33 million by September 2025. The deployment employs multiple technologies including optical fiber cables, satellite links for remote regions, and wireless technologies for last-mile connectivity, ensuring comprehensive coverage even in challenging terrains. This infrastructure foundation is enabling digital service delivery at scale, supporting e-governance initiatives, facilitating online education in rural schools, and creating new economic opportunities for millions of citizens previously excluded from the digital economy.

India AI Mission Driving Compute Infrastructure and Artificial Intelligence Adoption

The Indian government launched the IndiaAI Mission with a budgetary outlay of Rs 10,372 crore to establish India as a global hub for AI development and applications. This mission addresses critical gaps in the AI ecosystem by democratizing access to high-performance computing infrastructure, essential for training advanced AI models and conducting cutting-edge research. The initiative operates through seven key pillars including IndiaAI Compute Capacity, IndiaAI Innovation Centres, IndiaAI Datasets Platform, and IndiaAI Application Development initiatives, creating a comprehensive framework for AI adoption across academia, startups, and enterprises. In June 2025, the IndiaAI Mission expanded its compute capacity to over 34,000 Graphics Processing Units, significantly exceeding its original target of 10,000 GPUs. This expansion, implemented through public-private partnerships with major cloud service providers, provides affordable AI compute infrastructure at up to 40 percent reduced costs for eligible users including academia, startups, and research institutions. The mission has received overwhelming response from the developer community, with more than 230 applications and over 30,000 GPU requests submitted for developing local language large language models. The initiative also provides 100 percent subsidy on compute infrastructure costs for companies developing foundational AI models, while other GPU-intensive operations such as inferencing and applications receive a 40 percent subsidy. Three AI Centres of Excellence have been established in healthcare, agriculture, and sustainable cities in New Delhi, while the IndiaAI Dataset platform has uploaded 367 datasets to AI Kosh for researchers and developers. The mission's focus on developing India-specific foundation models with capacity exceeding 100 billion parameters, trained on datasets covering major Indian languages, ensures that AI solutions address local requirements and contexts. This comprehensive approach positions India to leverage AI for economic growth, social development, and technological self-reliance while maintaining ethical AI governance standards through the Safe & Trusted AI pillar.

Enterprise Digital Transformation Accelerated by Cloud Computing and Emerging Technologies

Indian enterprises are undergoing fundamental transformation by integrating advanced technologies including cloud computing, artificial intelligence, cybersecurity, and Internet of Things into their operations and service delivery models. This digital transformation is driven by the imperative to remain competitive, reduce operational costs, enhance customer experiences, and unlock new revenue streams in an increasingly digital economy. The India ICT market growth is being propelled by enterprises transitioning from traditional billable-hours models to outcome-based pricing, where clients pay based on business results rather than time spent, reflecting the efficiency gains enabled by AI and automation. Major Indian IT services companies including Tata Consultancy Services, Infosys, HCL Technologies, and Wipro have invested heavily in upskilling their workforces, with TCS training over 100,000 employees in AI and machine learning, while Infosys developed AI awareness programs for 270,000 staff members. These companies are establishing AI Centers of Excellence and AI Foundries to test and deploy solutions across sectors including banking, healthcare, manufacturing, and retail. In January 2025, Tata Consultancy Services approved the acquisition of TRIL Bengaluru Real Estate Five & Six Ltd for Rs 1,625 crore to develop new delivery centers. In December 2025, TCS expanded its partnership with Bank of Baroda to implement an end-to-end financial inclusion solution over five years, demonstrating the growing demand for integrated digital transformation services across India's banking sector. The shift towards hybrid cloud models is particularly pronounced, with enterprises seeking flexibility and scalability that combines public cloud services with on-premise infrastructure. India's cloud computing market is projected to grow from USD 21.82 billion in 2025 to USD 58.73 billion by 2030, driven by increasing adoption across enterprises of all sizes. The deployment of 5G networks across India, with over 460,000 base transceiver stations operational by December 2025, is further catalyzing digital transformation by enabling ultra-low latency applications, enhanced IoT deployments, and real-time data processing capabilities essential for Industry 4.0 initiatives.

India ICT Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on spending and technology.

Spending Insights:

• Devices
• Software
• IT Services
• Data Center Systems
• Communication

The report has provided a detailed breakup and analysis of the market based on the spending. This includes devices, software, IT services, data center systems, and communication.

Technology Insights:

• IOT
• Big Data
• Cloud Computing
• Content Management
• Security

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes IOT, big data, cloud computing, content management, and security.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India ICT Market News:

• July 2025: Google announced a USD 6 billion investment to develop a 1-gigawatt data center in Visakhapatnam, India, supporting the country's expanding cloud computing and AI infrastructure requirements. This investment demonstrates the growing confidence of global technology companies in India's digital economy and will provide significant compute capacity for enterprise workloads.
• June 2025: HCL Technologies expanded its strategic partnership with AMD, a major semiconductor company in the United States, to develop innovation labs focused on boosting enterprise digital transformation. Additionally, HCL Tech partnered with E.ON, Europe's largest energy company, and ASISA, a prominent health insurer in Spain, to transform their digital solutions.

India ICT Market Report Coverage:

Key Questions Answered in This Report:

• How has the India ICT market performed so far and how will it perform in the coming years?
• What is the breakup of the India ICT market on the basis of spending?
• What is the breakup of the India ICT market on the basis of technology?
• What is the breakup of the India ICT market on the basis of region?
• What are the various stages in the value chain of the India ICT market?
• What are the key driving factors and challenges in the India ICT market?
• What is the structure of the India ICT market and who are the key players?
• What is the degree of competition in the India ICT market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India ICT market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India ICT market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India ICT industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.