Insurance Sector Drives India’s Enterprise ICT Expansion

Int’l Desk: Banking, financial services and insurance firms are set to drive the bulk of technology investment in India’s enterprise market over the next few years. According to analysis from GlobalData, the BFSI sector will account for 14.5 percent of cumulative ICT revenue between 2025 and 2030 and is expected to grow at a compound annual rate of 20.6 percent. That pace outstrips the wider enterprise ICT market, which is forecast to expand at 15.5 percent a year through the end of the decade.

Spending inside banking, financial services and insurance is being pushed higher by continued investment in digital banking and payments, stronger cybersecurity and data protection, modernisation of core systems, real-time risk analytics and smoother digital onboarding. Insurance companies and capital markets players are adding to the demand as more of their distribution and claims work moves online.

Overall enterprise technology budgets remain healthy. GlobalData’s 2026 ICT Customer Insight Survey found that 92.3 percent of enterprise ICT decision-makers in India increased their technology budgets this year compared with the year before. Government support is also playing a role. Authorities have approved 1.2 billion dollars through 2029 to strengthen the artificial intelligence ecosystem and expand access to high-end computing power. India’s more than 1,700 global capability centres continue to generate demand for cloud services, cybersecurity, data centre capacity, networking and enterprise software as they deliver technology, engineering and research services.

Cloud computing is expected to remain the largest single IT solution segment, making up 17.9 percent of cumulative ICT revenue between 2025 and 2030 and growing at 21.1 percent a year as companies shift away from traditional on-premise systems toward public and hybrid cloud platforms. Artificial intelligence is projected to be the fastest-growing area, expanding at a 54 percent compound annual rate as businesses move applications from pilot stages into full production. The two technologies are reinforcing each other because production-scale AI systems require substantial cloud computing capacity.

Beyond the financial sector, agriculture and forestry, manufacturing and information technology are also expected to lift overall ICT spending. Farmers are adopting sensors, drones and geographic information systems, while manufacturers push further into automation, real-time monitoring and predictive maintenance. Small and medium-sized enterprises are increasing their technology use as digitisation becomes more important for staying competitive, helped by better digital infrastructure, subsidies and easier access to cloud and digital commerce platforms.