Bain: India to boost AI and data spending by 2026
India's tech budgets are getting a big AI and data boost.
By 2026, nearly half of change-related technology budgets here will go toward artificial intelligence and data-led transformations, while core application modernisation and cloud infrastructure are other areas of capex investment, outpacing global trends, says Bain & Company.
Overall IT spending is expected to grow 6% to 8%, which is faster than the world average.
Indian tech budgets now 50%-60% capex
Indian companies are putting more money into long-term investments—about 50% to 60% of their tech budgets go to capital expenses like new platforms and infrastructure (much higher than the global norm).
But it's not all smooth sailing: 72% of CIOs say old legacy systems are slowing down digital transformation, plus there are skill gaps and worries about ROI.
Bain suggests a "future-back" approach—rethinking how businesses work could boost EBITDA by 15%-20%.