India's IT spending is expected to grow 16.3 per cent to Rs2,43,000 crore ($43.57 billion) in 2012 from Rs2,09,000 crore ($37.46 billion) in 2011, as more and more small and medium companies invest in emerging information technologies, research firm IDC said.
Despite a decline in economic growth rate, India's IT investments continue to grow at a higher pace, IDC said in its report `India IT Market Overview Report – 2012'.
The IDC report, however, said India still commands a high growth rate, next only to China among BRIC countries, and higher than several developing economies.
IDC feels the decline in GDP growth in India is a temporary phenomenon caused mainly by a dip in consumption due to high inflation and a declining rupee.
Investors as well as consumers are pausing before taking a decision, mainly due to economic uncertainties, according to IDC.
"Cautious optimism will continue to be the order of the day for most enterprises. However, this is not expected to reduce IT investment. It merely indicates that future investments will undergo intense scrutiny and that effective financial and risk management will gain priority in the days to come," Ravi Sharma, Research Manager (Consulting Group) of IDC India, said.