India’s Information Security Investments Projected to Reach $3.4 Billion by 2026 Due to AI Threats
Synopsis
A recent report reveals that India's information security spending is set to reach $3.4 billion by 2026, driven by the rise of AI threats and regulatory demands. With a growing focus on identity-based security, companies are adapting their defense strategies to safeguard against evolving cyber risks.
Key Takeaways
Projected spending on information security in India will reach $3.4 billion by 2026.
Security software is anticipated to grow by 12.4 percent .
Demand for managed security services is driving spending growth.
Identity-based threats are increasing, necessitating enhanced security measures.
The implementation of the DPDP Act is adding complexity to compliance requirements.
New Delhi, March 9 (NationPress) Spending by end-users on information security in India is anticipated to reach $3.4 billion by 2026, reflecting a growth of 11.7 percent from 2025, as reported on Monday.
The analysis from Gartner indicates that security software will continue to be the largest and most rapidly expanding segment in 2026, with an expected growth rate of 12.4 percent as organizations focus on enhancing their infrastructure and cloud security.
Network security and security services are projected to experience significant growth, both increasing by 11.1 percent, resulting in total information security expenditures in India reaching $3,435 million in 2026, the report elaborates.
Demand for managed security services will drive the spending on security services in India, marking it as the fastest-growing subsegment with an approximate growth rate of 15.1 percent.
“As enterprises face increasingly sophisticated AI-driven threats and navigate stricter regulatory frameworks, security spending in India is expected to rise in 2026,” stated Shailendra Upadhyay, Senior Principal at Gartner.
Indian Chief Information Security Officers (CISOs) are shifting strategically towards dynamic and proactive defense models, he added.
With threats such as identity-based attacks, including credential compromise and deepfake-enabled fraud, rapidly broadening the attack surface, the report emphasizes that identity threat detection and response (ITDR) has become a paramount concern.
As a result, identity-first security is gaining traction among executives, further strengthened by the mandates of the Digital Personal Data Protection (DPDP) Act, according to Upadhyay.
“The enactment of India's DPDP Act, coupled with emerging AI regulations globally, is adding layers of compliance complexity and imposing new accountability on CISOs,” noted Alex Michaels, Director Analyst at Gartner.
Michaels urged cybersecurity leaders to move past a control-centric approach and to present themselves as facilitators of secure, scalable business innovation.
The firm also recommended that industry leaders formalize collaboration with legal, business, and procurement teams, establishing shared accountability for cyber risk.
“Indian businesses are increasingly adopting managed detection and response (MDR) and other managed services as they seek scalable, cost-effective solutions to address the growing complexity of cyber threats,” added Upadhyay.
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Point of View
Indian enterprises are recognizing the urgent need for enhanced security measures. This report highlights not only the financial commitment being made but also emphasizes the strategic shifts that organizations must undertake to stay ahead in the face of increasing digital vulnerabilities.
NationPress
2 May 2026
Frequently Asked Questions
What is the projected spending on information security in India by 2026?
India's end-user spending on information security is projected to reach $3.4 billion by 2026.
What is driving the growth in security services spending?
The demand for managed security services is driving the growth in security services spending, with an estimated growth rate of 15.1 percent.
How are Indian CISOs adapting their strategies?
Indian Chief Information Security Officers are shifting towards dynamic and proactive defense models to combat sophisticated threats.
What role does the DPDP Act play in security spending?
The Digital Personal Data Protection Act is increasing compliance complexity and accountability pressures on CISOs.
Why is identity threat detection a priority?
The rise of identity-based attacks is expanding the attack surface, making identity threat detection and response a core priority.
