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Truth that Matters. Stories that Impact

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India BFSI Technology Spending to Grow at Over 20% Annually Through 2030

Spending on information and communications technology (ICT) within India’s banking, financial services, and insurance (BFSI) sector is projected to expand at a compound annual growth rate (CAGR) of 20.6% between 2025 and 2030, according to research from GlobalData.

What Happened

According to GlobalData’s India Enterprise ICT Country Intelligence Report, the BFSI sector will represent the largest vertical segment in the country’s enterprise ICT market. The industry is projected to account for 14.5% of cumulative enterprise ICT revenue over the 2025 to 2030 period.

Overall, India’s enterprise ICT market is forecast to grow at a CAGR of 15.5% through 2030. This expansion is supported by high enterprise spending sentiment; GlobalData’s 2026 ICT Customer Insight Survey revealed that 92.3% of enterprise ICT decision-makers in India increased their technology budgets in 2026 compared to the previous year.

Key Highlights

  • BFSI Leadership: BFSI is forecast to be the largest vertical, capturing 14.5% of cumulative ICT revenue from 2025 to 2030 with a 20.6% CAGR. Key drivers include digital banking, payments, cybersecurity, data protection, core modernisation, real-time risk analytics, and online claims and distribution.
  • Cloud and AI Expansion: Cloud computing will remain the largest solution segment, taking 17.9% of cumulative revenue with a 21.1% CAGR. Artificial intelligence (AI) will be the fastest-growing segment at a 54% CAGR as projects transition from pilot phases to production.
  • Public and Private Support: The Indian government has approved $1.2 billion through 2029 to enhance the AI ecosystem and expand computing access. Meanwhile, more than 1,700 global capability centres (GCCs) in the country are driving demand for cloud, data centres, networking, and enterprise software.
  • Broad Sector Adoption: Agriculture is deploying drones, sensors, and GIS tools, while manufacturing is adopting Industry 4.0 automation, predictive maintenance, and real-time monitoring. Small and medium enterprises are also expanding adoption through cloud platforms and government subsidies.

Why This Matters

The rapid expansion of enterprise technology spending across India highlights a significant shift toward digital-first operations. The mutual reinforcement between cloud computing and production-level artificial intelligence requires extensive computing capacity and modernisation of legacy infrastructure across industries, led predominantly by financial institutions, global capability centres, and manufacturing units.

What to Watch Next

Key areas to monitor include the rollout of the government’s $1.2 billion AI ecosystem programme through 2029, the migration of pilot AI projects into full production environments across enterprises, and the ongoing shift of financial institutions and SMEs toward hybrid and public cloud infrastructures.

Frequently Asked Questions

Which sector leads enterprise ICT spending in India?

The banking, financial services, and insurance (BFSI) sector is the largest vertical, expected to account for 14.5% of cumulative enterprise ICT revenue between 2025 and 2030.

What is the fastest-growing technology segment in India?

Artificial intelligence is projected to be the fastest-growing IT solution segment, with a compound annual growth rate of 54% as enterprises move applications into production.

What is driving technology investment outside the financial sector?

Growth is driven by over 1,700 global capability centres, manufacturing investments in Industry 4.0 automation, agricultural technology adoption, and small enterprises leveraging cloud platforms.

Source: GlobalData / Insurance Asia / Asian Business Review