India's Tech Spending To Grow 11% In 2025: Forrester

Fuelled by strong enterprise investments, the Union government's push for digitalisation and a surge in venture capital funding, India's tech spending is expected to reach Rs 5 trillion in 2025, which represents an 11% year-on-year growth, according to projections by research firm Forrester.

This is despite the damp outlook in Asia-Pacific amid evolving tariff negotiations. Forrester initially projected that technology spending in the APAC region would grow by 6.5% in 2025 to reach $722 billion, up from $678 billion in 2024 and on par with the growth experienced last year.

The imposition of US tariffs is expected to increase technology costs, disrupt supply chains, and dampen overall IT investments in APAC. Heightened uncertainty is expected to lower growth by 1 or 2 percentage points, depending on specific country exposure and IT spending categories.

However, the outlook looks strong for Southeast Asia. Apart from 11% in India, tech spending in 2025 will grow by 8.5% in Indonesia, 7.2% in Malaysia, 9.4% in the Philippines, 7.7% in Thailand and 10% in Vietnam, totalling around $69 billion. The strong growth is due to digitisation and a growing focus on cybersecurity, with AI playing a key role in enhancing threat detection and online safety. 

Among other countries in APAC, tech spending is expected to be 6.6% in Australia, 7.7% in China and 5.6% in Singapore. 

Despite global volatility, adoption of AI and cloud will continue at a rapid pace and fuel robust spending growth on software and IT services in Asia. India and Vietnam are expected to outperform the regional average —driven by strong momentum in digital infrastructure and aggressive modernisation agendas.

According to Forrester's Asia Pacific Tech Market Forecast, 2024 to 2028, the software market is set to grow 10.4% in 2025, with AI and cloud services dominating demand.

The IT services category is expected to grow by 6%, propelled by rising demand for hybrid cloud solutions, cybersecurity consulting and system integration to manage increasing regulatory complexity.