Gartner

Newsroom

Mumbai, India, February 4, 2013 View All Press Releases

Gartner Says Indian Government to Spend 368 Billion Rupees On IT In 2013

The Software Market To Be The Leading Growth Segment This Year

The Government of India (GoI) will spend 368 billion rupees on IT products and services in 2013, an increase of 10.5 percent over 2012 revenue of 333 billion rupees, according to Gartner, Inc. This forecast includes spending by government organizations on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Telecommunications, which includes telecommunications and networking equipment and services, will remain the largest overall spending category throughout the forecast period within the government sector. It is expected to grow 6.8 percent in 2013 to reach 118 billion rupees in 2013, up from 111 billion in 2012 – most of this growth will be in enterprise network equipment. Software is achieving the highest growth rate amongst the top level IT spending categories – forecast to be 18 percent in 2013, led by investments in desktop software and infrastructure software.

The IT industry is expected to indirectly benefit from government projects such as the Unique Identification Authority of India (UIDAI), which will create an online database with biometric and identity details of Indian residents, the launch of the National Optical Fibre Network and the computerization of commercial taxes in states.

“The Indian government is starting to leverage UID identities to authenticate citizens for transferring welfare benefits directly to the recipient’s bank accounts, in the form of cash transfers, thereby creating a new system for welfare benefits,” said Anurag Gupta, research director at Gartner. “India goes to the national polls in 2014, and the GoI will aim to expand the UID operational infrastructure by speed tracking ‘financial inclusion’, allowing easy access to banking for poor & encouraging micro ATMs. To expand the benefits of IT, GoI aims to invest more than INR 20,000 crores in expanding broadband penetration. The electronic chip making project, digitization of academic databases across all educational institutions, vehicle registrations, driving license databases etc will be the major focus areas”

Further information on insurance, and government and education sector IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2010-2016, 4Q12 Update’, available at http://www.gartner.com/resId=2305215. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.

 

Contacts
About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner in more than 14,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,100 associates, including more than 1,460 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.

Gartner Insight
Gartner Webinars