The Indian government is expected to spend USD 7.8 billion (over Rs 50,263 crore) on IT in 2017, an increase of 7.5 per cent over last year, research firm Gartner today said.
This is, however, lower than Gartner's previous projection of 9.5 per cent growth this year.
"The 2 per cent revision in our outlook is primarily due to the effects of demonetisation and a drop in industrial production," Gartner Principal Research Analyst, Moutusi Sau, said in a statement.
Sau said that spending plans like affordable housing scheme, and increased loans to small and medium enterprises by the government, however, are likely to have a positive effect on IT spending in the next few quarters.
IT services (consulting, software support, business process outsourcing, IT outsourcing, implementation, and hardware support) is expected to grow 10.8 per cent in 2017 to reach USD 2 billion, making it the largest spend category.
The software segment -- which includes enterprise resource planning (ERP), customer relationship management (CRM) and others -- is forecast to grow 10.8 per cent in 2017 to reach USD 1.1 billion USD.
Devices category of printers, mobile devices and PCs is expected to grow 10.4 per cent to reach USD 1.1 billion.
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