IT end-user spending in India is expected to reach US $110 billion by 2012 representing a CAGR of 14.8 percent from 2007 to 2012, according to Gartner. So far in 2008, IT end user spending is on pace to reach US $64.7 billion, a 17.2 percent increase from 2007.

This prediction, supplemented by a robust gross domestic product (GDP) averaging 8.08 per cent growth from 2007 through 2012, means the Indian market continues to represent a significant growth opportunity for IT vendors.

India is poised for double-digit growth across many vertical markets, with financial services and communications organizations spending the most on IT, closely followed by services, manufacturing and government.

“Indian businesses continue to invest in IT in order to drive operational excellence and innovation,” said Naveen Mishra, senior research analyst at Gartner. “Small and midsize businesses (SMBs) will drive the growth of various IT-related industries, with the critical involvement of value added resellers, distributors and retailers. Additionally, the Indian government's pro-business policies and their own increasing use of IT will continue to build confidence among local companies seeking to invest in and use IT.”

More predictions from the report can be seen here: http://www.gartner.com/it/page.jsp?id=756314