Growth is driven by increased manufacturing and natural resources and government spending on IT
IT spending by Indian enterprise across all industry markets is forecast to rise by 16.4% to INR1,910bn ($34bn) in 2012 from INR1,640bn ($29bn) in 2011, according to Gartner.
The growth has been attributed to the relative strength of the Rupee against a weakened US dollar, and is expected to be moderate through 2016 and settle at the range of 8% to 9%.
Manufacturing and natural resources vertical market spending on IT is expected to reach INR386bn ($6.9bn), up from INR334bn ($5.98bn) in 2011 while the government spending will increase to INR349bn ($6bn) in 2012 from INR 302bn ($5bn) in 2011.
Gartner principal research analyst Derry Finkeldey said Indian IT providers continue to experience strong growth, and there are more Indian companies in general taking a place on the global stage.
"There are currently 25 Indian companies in the Fortune 500, and there is a corresponding uptake of information and communications (ICT) technologies in the domestic market, as organizations seek globally competitive practices," Finkeldey said.
"The best growth opportunities in terms of actual total dollars will remain the government, financial services and large manufacturing sectors throughout the forecast period."
The research firm revealed that ICT market continues to outpace most markets in Asia/Pacific where the relatively small education ICT market has seen growth by the Government investment in the revamp of education.
The report forecasts the education segment to see the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 18%.
Gartner stated there is constant flux in terms of the industries leading growth in the Indian market.
"There are multiple, constantly changing factors impacting the industries, as global and local economic and political will is enacted, and regulation on specific industries in particular have enormous influence on cycles of investment and industry growth," Finkeldey added.