India tech budgets rise modestly, 25‑30%

Indian companies are increasing technology budgets in 2026, but the rise looks measured rather than open-ended. Bain & Company said Indian enterprise IT spending is likely to grow 6%-8% this year, with a large share of that money going to AI, data modernization, cloud and cybersecurity. (bain.com) Bain’s survey covered more than 250 CIOs, CDOs, CAIOs and other executives across Indian enterprises. The social-media framing around “25%-30%” appears to fit better with profit or earnings expectations in selected companies and sectors than with overall enterprise tech-budget growth. (adani.com) The clearest published figure for broad technology spending that surfaced in current reporting is Bain’s 6%-8% estimate for 2026, not a 25%-30% rise in tech budgets. (pmindia.gov.in) ### If budgets are only rising modestly, where is the money going? Bain said about 40% of enterprise technology budgets in 2026 will be allocated to change initiatives, and about 40%-45% of that pool is expected to go to AI- and data-led transformation projects. The same report said capital expenditure accounts for 50%-60% of enterprise technology budgets in India, versus 20%-30% globally. (bain.com) Indian enterprises are directing roughly 30% of capex to AI platforms and data modernization, Bain said. Core application modernization and cloud infrastructure each account for about 25%, while cybersecurity represents about 20%. (bain.com) ### Why does the “cautious AI spending” line keep showing up? The Times of India reported in November 2025 that an EY-CII study found Indian companies were moving from AI pilots to deployment, but remained cautious about committing very large sums to full-scale transformation. That description matches Bain’s finding that companies are spending more, while still trying to tie that spending to business value and modernization priorities. (businesstoday.in) Sandeep Nayak, a Bain partner, said the question for Indian enterprises is shifting from how much is being spent to how effectively that spending creates business value. (businesstoday.in) That is a budget discipline point, not a retreat from AI investment. ### Are defence, renewables, finance and healthcare actually the sectors to watch? Government and consulting material supports much of that sector list, though not as a single official ranking. India’s defence manufacturing base has expanded rapidly, with official and industry-backed material pointing to higher domestic production and exports over the past decade. Healthcare and banking also feature prominently in McKinsey’s 2026 India compendium, including sections on AI in banking, insurance and pharmaceutical operations. (timesofindia.indiatimes.com) Renewable energy remains a standing policy priority under the Ministry of New and Renewable Energy. BCG said in February that the next phase of India’s tech value creation is likely to come from AI, deep tech, hyperscale cloud platforms and semiconductors rather than traditional services alone. (businesstoday.in) That helps explain why investors and executives are pairing sector calls with infrastructure and compute themes. ### What is Adani doing that made it part of this conversation? Adani Group said on February 17 that it would invest $100 billion by 2035 in renewable-energy-powered, hyperscale AI-ready data centres. The company said the plan builds on AdaniConneX’s existing 2 GW national data-centre platform and expands toward a 5 GW target. (static.pib.gov.in) Gautam Adani said the group was expanding into a “complete five-layer AI stack” focused on India’s technological sovereignty. Adani also pointed to partnerships involving Google, Flipkart and Microsoft, with campuses in places including Visakhapatnam, Noida, Hyderabad and Pune. (bcg.com) ### What should readers watch next? The IndiaAI Mission remains one concrete marker for the next leg of spending. The Indian government has said the mission carries a ₹10,371.92 crore outlay over five years, aimed at compute capacity, models, datasets, startup financing and skills. Company earnings calls, annual reports and budget disclosures through the rest of 2026 will show whether enterprise AI spending stays in the high-single-digit range Bain described or broadens further into infrastructure-heavy commitments. (adani.com) (pmindia.gov.in)