India’s Information Security Spending to Reach $3.4 Billion in 2026 Amid Rising AI-Driven Threats

New Delhi — Spending on information security by end users in India is expected to reach $3.4 billion in 2026, reflecting an 11.7 per cent increase compared to 2025, according to a report released on Monday by Gartner.

The report indicates that security software will remain the largest and fastest-growing segment next year, with spending projected to rise by 12.4 per cent as organisations focus more on strengthening infrastructure and cloud protection.

Meanwhile, network security and security services are also anticipated to witness strong growth, each expanding by 11.1 per cent, taking India’s overall information security expenditure to around $3,435 million in 2026.

Demand for managed security services is expected to drive growth in the services segment, which is forecast to be the fastest-growing subcategory with a 15.1 per cent growth rate.

“Security investments in India are set to rise in 2026 as enterprises deal with increasingly sophisticated AI-driven threats and stricter regulatory obligations,” said Shailendra Upadhyay, Senior Principal at Gartner. He noted that Indian Chief Information Security Officers (CISOs) are gradually shifting toward dynamic and proactive defence strategies.

The report highlighted that identity-based attacks, including credential theft and deepfake-enabled fraud, are rapidly widening the cyber threat landscape. As a result, Identity Threat Detection and Response (ITDR) is becoming a critical priority for organisations.

This shift is also pushing identity-first security frameworks higher on corporate agendas, reinforced by compliance requirements under the Digital Personal Data Protection Act (DPDP Act), Upadhyay added.

According to Alex Michaels, Director Analyst at Gartner, the rollout of India’s DPDP Act along with emerging global AI regulations is increasing compliance complexity and placing additional accountability on CISOs.

He advised cybersecurity leaders to move beyond a control-centric approach and instead position themselves as enablers of secure and scalable business innovation.

The firm also recommended stronger coordination between cybersecurity teams and departments such as legal, business and procurement, ensuring shared responsibility for managing cyber risks.

Upadhyay added that Indian enterprises are increasingly adopting Managed Detection and Response (MDR) and other managed security services as they look for scalable and cost-effective solutions to tackle the growing sophistication of cyber threats.

With inputs from IANS