India’s technology spending growth is projected to moderate slightly to 13.4% in 2026 from 13.7% in 2025, according to Forrester’s Asia Pacific Tech Market Forecast released on Thursday. Despite the minor slowdown, India will remain the second-fastest-growing technology market in the region, behind Vietnam at 15.4%.
Forrester attributed the sustained double-digit momentum to rapid cloud adoption, data localization requirements, and the growing integration of artificial intelligence across enterprise applications. The implementation of India’s Digital Personal Data Protection (DPDP) Rules 2025, mandating local data storage for major organizations, is also accelerating investment in data centers, which are expected to expand by more than 20%, according to Business Standard.
“India’s double-digit technology spending growth is being propelled by a combination of cloud acceleration, regulatory clarity, and strong domestic demand,” said Ashutosh Sharma, vice president and research director at Forrester. He noted that companies balancing compliance obligations with AI and automation investments will be best placed for future growth.
Forrester also expects tech salaries in India to rise nearly 10% in 2026, the highest increase across the Asia Pacific region, where the average IT pay hike is projected around 5%. The expansion of global capability centers and momentum in government-led digital programs are further supporting the sector.
Across Asia Pacific, overall technology spending is forecast to grow 9.3%, with more than $437 billion expected to be invested between 2025 and 2030. China’s growth is projected at 10.7%, driven by significant AI infrastructure spending, while Australia and Singapore are forecast at 8.6% and 6%, respectively.
“Asia Pacific’s technology spending momentum remains strong, but the headline growth numbers mask a more complex reality,” said Frederic Giron, vice president and senior research director at Forrester, citing challenges such as software inflation, hardware volatility, and diverging regulations affecting modernization plans.
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