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

New Delhi, March 9 (IANS) 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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