Driven by growth in software and IT services revenue, research agency, Gartner, forecasts that the IT spending in India will reach USD72.4 billion in 2017 - up 6.9% from 2016.

Analysts said the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.

"’Make in India’ is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy," said Partha Iyengar, Gartner Fellow and head of research at Gartner India.

"Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations' digital business models are being built. Some leading edge organizations are already starting to extend that journey to the beginnings of algorithmic business."

Software spending is projected to grow 7.3% in 2016, and it will grow another 12.8% in 2017 to total USD5 billion. IT services spending is on pace to grow 8.3% in 2016 to reach USD11 billion, and increase 13.5% in 2017 to reach USD12.5 billion.

Roshe Run Kaishi