India IT spending expected to see close to 19% growth this year: Report

IT spending in India is expected to witness close to 19 per cent growth in 2024, whereas, globally, it is expected to see about 8 per cent growth, a new report said on Thursday.

According to Grant Thornton Bharat, the second quarter (Q2) of the calendar year 2024 (April-June) saw an increase in deal volumes by 9 per cent, from 69 to 75.

"The Indian technology industry is showing promising signs of revival and stabilisation. Generative AI is driving new opportunities for growth and innovation, with CIOs focusing on enhancing customer experience and operational efficiency," said Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat.

In Q2, PE (private equity) volumes have increased since Q3 2023, reaching the highest in two years.

Technology startups dominated PE activity with 60 per cent of volumes and 57 per cent of values, whereas, the enterprise software/SaaS segment accounted for 30 per cent of volumes, according to the report. B2B (business-to-business) startups led PE deal activity accounted for 74 per cent of volumes and 51 per cent of values in Q2.

Avail Technologies, a B2B startup, secured $70 million in funding across two rounds to enhance product development and expand globally. Logistics services platform Perfios and Ola's Krutrim AI achieved unicorn status in 2024. The enterprise software/SaaS segment recorded 20 transactions worth $79 million.