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India's Cyber Security Spending to Hit $3.4B by 2026 Amid AI Threats

End-user spending on information security in India is projected to total $3.4 billion in 2026, an 11.7% increase from 2025. The growth is driven by organizations confronting sophisticated AI-driven threats and complying with stricter regulations like the Digital Personal Data Protection Act. Security software remains the largest segment, while managed security services are the fastest-growing subsegment. Industry leaders are advised to shift from a control-centric mindset to becoming enablers of secure business innovation.

Key Points: India's Info Security Spending to Reach $3.4B in 2026

  • Spending to hit $3.4B in 2026
  • AI-driven threats drive growth
  • DPDP Act increases compliance pressure
  • Managed security services fastest growing
2 min read

India's information security spending to hit $3.4 billion in 2026 amid AI threats

India's information security spending is projected to grow 11.7% to $3.4 billion in 2026, driven by AI threats and new data regulations.

"Security spending in India is set to grow... as enterprises confront increasingly sophisticated AI driven-threats - Shailendra Upadhyay, Gartner"

New Delhi, March 9

End‑user spending on information security in India is projected to total $3.4 billion in 2026, marking an increase of 11.7 per cent from 2025, a report said on Monday.

The report from Gartner said that security software will remain the largest and fastest‑growing segment in 2026, with spending expected to grow 12.4 per cent as organisations prioritise infrastructure and cloud security.

The network security and security services are expected to see massive expansion, both up 11.1 per cent, with total information security spending in India reaching $3,435 million in 2026, the report further said.

Security services spending in India will be driven by demand for managed security services, the fastest growing subsegment with an estimated 15.1 per cent growth rate.

"Security spending in India is set to grow in 2026 as enterprises confront increasingly sophisticated AI driven‑ threats and comply with more stringent regulatory requirements," said Shailendra Upadhyay, Senior Principal at Gartner.

Indian chief information security officers (CISOs) are making a strategic shift toward dynamic and pre-emptive defence models, he added.

Identity based‑ attacks, such as credential compromise and deepfake‑enabled fraud are rapidly expanding the attack surface, making identity threat detection and response (ITDR) a core priority, the report flagged.

Consequently, identity-first security is moving up executive agendas and is further reinforced by the requirements of the Digital Personal Data Protection (DPDP) Act, Upadhyay said.

"The implementation of India's DPDP Act, combined with emerging AI regulations across global markets, is increasing compliance complexity and placing new accountability pressures on CISOs," said Alex Michaels, Director Analyst at Gartner.

Michaels urged cybersecurity leaders to move beyond a control centric‑mindset and position themselves as enablers of secure, scalable business innovation.

The firm also advised industry leaders to formalise collaboration with legal, business and procurement teams, and establishing shared accountability for cyber risk.

"Indian enterprises are adopting managed detection and response (MDR) and other managed services as they look for scalable, cost-efficient solutions to navigate the increasing complexity of cyber threats," said Upadhyay.

- IANS

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Reader Comments

A
Arjun K
$3.4 billion sounds huge, but is it enough? Every week we read about data leaks from Indian companies. The DPDP Act is a good step, but enforcement will be key. Hope this spending translates to actual security for common citizens.
R
Rohit P
As someone in IT, the shift to managed security services makes complete sense. Talent shortage is real. MDR allows companies to get top-tier security without building massive in-house teams. Smart move by Indian enterprises.
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Sarah B
The part about CISOs becoming "enablers of business innovation" is so important. Security teams are often seen as saying "no" to everything. This proactive, collaborative approach is the need of the hour for India's startup ecosystem.
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Vikram M
Deepfake fraud is terrifying. Just last month my cousin almost got scammed by a fake video call. Glad to see identity threat detection is a priority. Public awareness campaigns are also needed alongside this spending.
K
Karthik V
Respectfully, while the spending increase is good, I worry most of this will go to foreign software vendors. We need to build our own indigenous cybersecurity capabilities and products. Atmanirbhar Bharat should apply here too.
M
Meera T
Good analysis. The

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