The India cloud computing market size was valued at USD 23.33 Billion in 2025. The industry is expected to grow at a CAGR of 27.30% during the forecast period of 2026-2035 to reach a valuation of USD 260.73 Billion by 2035.
India cloud computing market is witnessing strong growth, driven by digital transformation across sectors, rising demand for data localization, and the rapid adoption of AI, analytics, and IoT. Enterprises are migrating workloads to public, private, and hybrid cloud environments to improve scalability, reduce costs, and enhance service delivery. For instance, Microsoft Azure, Amazon Web Services (AWS), and Google Cloud are expanding their footprints in India, with AWS reporting USD 29.3 billion in cloud revenue globally in Q1 2025, reflecting a 17% year-on-year increase, partly driven by demand in markets like India. Microsoft’s Azure also saw a 33% growth in cloud services revenue in the same period, highlighting enterprise adoption.
Government initiatives like Digital India and the expanding startup ecosystem are fueling cloud uptake, particularly among SMEs, supporting the India cloud computing market expansion. Global players such as AWS, Microsoft Azure, and Google Cloud are investing in local data centers, while Indian providers are expanding regionally. Increased 5G rollout and remote work trends are also contributing to sustained market momentum. The Personal Data Protection Bill (pending legislation as of 2025) and RBI mandates requiring financial data to be stored locally have pushed organizations to adopt cloud solutions with local data centers. This has spurred investments by global and Indian cloud providers to comply with regulations.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
27.3%
Value in USD Billion
2026-2035
*this image is indicative*
| India Cloud Computing Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
23.33 |
|
Market Size 2035 |
USD Billion |
260.73 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
27.30% |
|
CAGR 2026-2035- Market by Region |
East India |
28.9% |
|
CAGR 2026-2035 - Market by Region |
West India |
27.8% |
|
CAGR 2026-2035 - Market by Deployment |
Hybrid |
30.4% |
|
CAGR 2026-2035 - Market by Enterprise Size |
Small and Medium Enterprises |
29.8% |
| 2025 Market Share by Region | South India |
31.2% |
Indian enterprises in the India cloud computing market are rapidly integrating artificial intelligence (AI) and machine learning (ML) into their cloud strategies, driven by the rise of generative AI tools and data analytics needs. Cloud platforms like AWS, Azure, and Google Cloud are offering AI-ready infrastructure, enabling scalable model deployment. In BFSI, HDFC Bank uses Azure for AI-driven fraud detection. Healthcare firms like Apollo Hospitals employ Google Cloud for predictive diagnostics. With Microsoft’s AI-focused cloud expansion and increased demand for automated decision-making tools, businesses are shifting from basic storage solutions to advanced AI-enabled services. The availability of pre-trained models and APIs is accelerating cloud adoption even among mid-sized firms and startups.
Data protection regulations and digital sovereignty concerns are pushing India toward localized cloud infrastructure. The Reserve Bank of India and MeitY are promoting indigenous cloud solutions to reduce reliance on global hyperscalers. India’s proposed Digital Personal Data Protection Act has intensified the need for on-soil data centers. In 2024, the Ministry of Health and Family Welfare migrated its Ayushman Bharat Digital Mission (ABDM) data to NxtGen’s Chennai data center to comply with healthcare data localization norms. PSU banks and government departments are now mandated to use Indian cloud vendors for sensitive data. This has spurred investment in data center hubs in Mumbai, Hyderabad, and Chennai, thus supporting the India cloud computing market. CtrlS operates hyperscale data centers in Mumbai, Hyderabad, Noida, and Chennai, with a capacity of over 1 million square feet.
Indian enterprises in the India cloud computing market are increasingly adopting multi-cloud and hybrid cloud models to balance performance, cost, and compliance. Instead of relying on a single cloud vendor, companies are blending services from AWS, Azure, and GCP to optimize workloads and minimize vendor lock-in. Hybrid setups allow mission-critical operations to remain on-premise while scaling other applications on public clouds. Godfrey Phillips India adopted a multi-cloud architecture to enhance agility in its deployments, aligning with its 'People-First' legacy. Telecom operators, IT service firms, and manufacturing enterprises are leading this shift. The trend also supports disaster recovery and data redundancy requirements, especially amid rising cybersecurity threats and service outage concerns. This modular approach is reshaping long-term IT strategies in India.
Cloud computing is becoming the backbone for India’s booming startup ecosystem and digital-first SMEs. Easy access to scalable infrastructure, pay-as-you-go pricing, and integrated DevOps tools have made cloud services indispensable for new-age firms, thereby boosting the growth of the India cloud computing market. Startups in fintech, edtech, logistics, and SaaS are designing cloud-native applications to go live faster and expand efficiently. Government schemes like Startup India and investments from global players like AWS Activate and Google for Startups are further incentivizing adoption. AWS Activate offers up to USD 10,000 in credits for DPIIT-recognized startups, along with access to AWS partner offers, premium training, and accelerator programs. This support enables startups to build and scale their businesses efficiently. Cloud credits, serverless computing, and marketplace integrations are helping smaller firms compete with larger enterprises, making cloud the default infrastructure for innovation in India.
India cloud computing market is witnessing strong growth driven by enterprise digital transformation, AI adoption, and regulatory shifts. Companies across BFSI, healthcare, and retail are integrating AI and machine learning through cloud platforms to enhance analytics, automation, and decision-making. This surge is supported by investments from global providers like Microsoft and AWS, which are expanding their data center infrastructure and AI offerings in the country. According to a 2024 NASSCOM report, over 50% of Indian enterprises now deploy AI solutions via the cloud, with public cloud platforms hosting the majority of these deployments.
India cloud computing market faces key restraints including data privacy concerns, limited digital infrastructure in rural regions, and high compliance costs for regulated sectors. Smaller firms often struggle with migration complexity, cybersecurity risks, and skill shortages in managing cloud environments. Additionally, reliance on global hyperscalers raises concerns around digital sovereignty and vendor lock-in. Regulatory uncertainty, especially around data localization and cross-border data flows, also slows adoption among industries handling sensitive information like banking, healthcare, and public services.
The Expert Market Research’s report titled “India Cloud Computing Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Service
Key Insight: As per the India cloud computing market analysis, Infrastructure as a Service (IaaS) is one of the most rapidly adopted segments in India’s cloud market, enabling businesses to access scalable computing resources without investing in physical infrastructure. Leading providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud offer virtual servers, storage, and networking tailored for startups to large enterprises. Google Cloud has added a second cloud region in Delhi-NCR to improve service availability and latency for Indian customers. Indian firms are increasingly using IaaS for disaster recovery, big data processing, and test environments, driven by the need for flexibility, pay-per-use pricing, and rapid deployment.
Market Breakup by Deployment
Key Insight: Public cloud dominates India cloud computing market due to its scalability, cost-effectiveness, and ease of deployment. Sectors like e-commerce, media, and SaaS startups heavily rely on services from AWS, Microsoft Azure, and Google Cloud. These platforms offer pay-per-use models, AI integration, and global infrastructure access. In May 2025, Black Box, an Essar Group firm, has earmarked ₹100 crore to expand its presence in India, aiming to double its business in the country. The investment will enhance its Bengaluru Center of Excellence and bolster India's digital infrastructure, particularly in AI and cloud sectors. The company targets public infrastructures, securing major contracts for digital advancement.
Market Breakup by Enterprise Size
Key Insight: Indian SMEs are increasingly adopting cloud computing to enhance agility, scalability, and competitiveness. As per indsutry reports, over half (52%) of SMEs leverage the scalability and affordability that public cloud offers. One in five SMEs have successfully migrated more than 50% of their workload to the cloud, and 51% prioritise cloud for customer support. Additionally, 36% of SMEs are investing in cloud-related skills to future-proof their operations, with 48% in North and East India emphasizing cloud skill development. The adoption of emerging technologies such as AI and big data analytics is also gaining traction among SMEs, with healthcare and IT/ITES sectors leading in innovation.
Market Breakup by End Use
Key Insight: The BFSI sector is one of the top adopters of cloud computing in India, using it for secure data storage, real-time analytics, fraud detection, and digital banking services. Banks and fintech firms in the India cloud computing market are increasingly shifting to hybrid cloud models to comply with RBI regulations and ensure data sovereignty. According to an IDC report, 80% of corporate banks in India migrated their operations to the cloud in 2024, reflecting a strong cloud-first strategy. Cloud-native solutions are also enabling personalized financial services, mobile banking, and faster loan processing, improving efficiency and customer engagement across urban and rural markets.
Market Breakup by Region
Key Insight: In North and West India, the BFSI sector leads cloud adoption due to high demand for secure, scalable infrastructure. Banks and insurance firms use cloud platforms for real-time data analytics, digital onboarding, fraud detection, and customer experience personalization. With India’s internet user base exceeding 751.5 million in 2024 (52.4% of the population) and 1.12 billion mobile connections, there is immense demand for digital financial services, particularly in urban centers like Delhi NCR and Mumbai. Traditional banks in Mumbai and Delhi NCR are adopting cloud infrastructure to compete with these agile players. For instance, PhonePe processes over 7 billion monthly transactions on cloud infrastructure, while Paytm launched voice-based payments in 2023 using cloud technology.
|
CAGR 2026-2035 - Market by |
Region |
| East India |
28.9% |
| West India |
27.8% |
| South India |
XX% |
| North India |
XX% |
SaaS Growth Accelerates with Startup Adoption and Investor Confidence
India's SaaS segment is booming, with homegrown players like Zoho, Freshworks, and Chargebee competing alongside global firms. Indian startups and SMEs prefer SaaS for its low upfront costs and ease of deployment. Zoho has reported a substantial profit of INR 2,836 crore in FY23, marking a 30% increase in revenue. The company has also expanded its product offerings with the launch of Zakya, a modern retail POS solution, catering to the evolving needs of Indian businesses. Applications in CRM, HR management, accounting, and customer support are widely used. The segment is also attracting significant VC investment due to its recurring revenue model. Demand of India cloud computing market is rising across industries including retail, education, and healthcare, where rapid digitization is a priority.
The Platform as a Service (PaaS) segment in India's cloud computing market is experiencing robust growth, driven by the country's rapid digital transformation and increasing demand for scalable, cost-effective application development solutions. Government initiatives like 'Digital India' and 'MeghRaj' are also propelling the PaaS market forward. These programs aim to enhance digital infrastructure and promote cloud adoption across various sectors, thereby increasing the demand for PaaS solutions that offer scalability and flexibility.
Hybrid Cloud Adoption Grows Among Large Enterprises Seeking Compliance and Scale
Hybrid cloud is gaining traction in India, especially among large enterprises in BFSI, manufacturing, and telecom. It combines on-premise infrastructure with public cloud capabilities, enabling firms to manage sensitive data securely while scaling operations. Companies use hybrid models to meet compliance mandates and ensure data sovereignty. Providers like IBM and Oracle are offering industry-specific hybrid solutions tailored to India’s regulatory environment, supporting critical workloads with high control and security requirements.
IT and Telecom Firms Drive Cloud Innovation and Infrastructure Expansion
As per the India cloud computing market report, IT and telecom companies are driving cloud innovation by integrating DevOps, virtualization, and network automation over cloud platforms. According to a report by Oliver Wyman and NASSCOM, cloud technology is projected to contribute 8% to India’s GDP by 2026, underscoring its economic significance. Telecom operators use cloud for 5G rollout, network function virtualization, and customer data management. IT service providers are leveraging public and private clouds for rapid application deployment, remote work enablement, and global delivery. The cloud also supports scalable backend systems for high traffic loads, making it essential for digital service expansion and uptime assurance.
Healthcare providers in India are increasingly utilizing cloud computing to improve patient care and streamline operations. Cloud-based electronic health records (EHRs) allow for seamless information sharing among medical professionals, enhancing diagnosis and treatment processes. Telemedicine services, powered by cloud platforms, have expanded access to healthcare, especially in remote areas. The adoption of cloud technology also facilitates compliance with data security regulations and supports the integration of advanced tools like AI for diagnostics.
Cloud Computing Enhances Healthcare Delivery in South India Through Digital Initiatives
In South India, particularly in Bengaluru, Chennai, and Hyderabad, cloud computing is transforming healthcare delivery. Hospitals, diagnostics chains, and health-tech startups use cloud for electronic medical records, telemedicine, and AI-enabled diagnostics, which is increasing the growth of the India cloud computing market. Government-backed digital health initiatives, such as the Ayushman Bharat Digital Mission (ABDM), are accelerating this transformation. As of December 2024, over 71.81 crore ABHA numbers have been generated, and 46.53 crore health records have been linked with ABHA. Additionally, more than 3.55 lakh health facilities have been registered on the Health Facility Registry (HFR), and over 5.38 lakh healthcare professionals have registered on the Health Professional Registry (HPR).
East India is emerging as a significant growth area in India's cloud computing market, driven by increasing investments in digital infrastructure. Kolkata, in particular, is becoming a data center hub, with major players like Adani and Reliance Jio investing in large-scale facilities. These developments are enhancing cloud service availability and reliability in the region, attracting businesses to adopt cloud solutions for improved scalability and efficiency. The government's push for digitalization and data localization is further propelling cloud adoption in East India.
Key players in the India cloud computing market are investing heavily in expanding their data center footprint to support growing demand from enterprises and digital-first businesses. They are working closely with government and private organizations to deliver localized cloud services, improve latency, and meet data residency norms. These companies are also enhancing infrastructure to support sectors like BFSI, healthcare, and retail, which require secure, scalable, and high-performance cloud environments. In addition to infrastructure development, market leaders are prioritizing strategic partnerships and upskilling initiatives to drive cloud adoption across small and medium enterprises. They are launching industry-specific cloud solutions and offering AI, machine learning, and analytics capabilities integrated with cloud platforms. These players are also collaborating with academic and public sector institutions to build talent pipelines and strengthen the digital ecosystem, aligning with India’s broader goals for digital transformation and innovation.
Amazon Web Services (AWS) is a leading cloud computing provider offering a broad set of infrastructure and platform services including computing, storage, database, AI, and analytics. In India, AWS supports enterprises, startups, and government agencies with scalable cloud solutions and localized data centers, enabling digital transformation and innovation across diverse industries.
Alphabet Inc., the parent company of Google, delivers cloud computing services through Google Cloud. It provides infrastructure, data analytics, AI/ML tools, and productivity applications to enterprises in India. With a focus on security and open-source integration, Google Cloud supports digital modernization, particularly across BFSI, retail, and public sector organizations through regional partnerships and industry-specific solutions.
IBM Corp. offers hybrid cloud and AI-powered solutions through IBM Cloud, focusing on regulated industries like BFSI, healthcare, and manufacturing. In India, IBM supports digital transformation by combining cloud-native technologies with consulting expertise. The company emphasizes open-source platforms, cybersecurity, and automation, enabling clients to modernize infrastructure and optimize operations while ensuring compliance and data protection.
Microsoft Corp. delivers cloud services via Microsoft Azure, supporting infrastructure, AI, DevOps, and business applications. In India, it operates multiple data centers and partners with enterprises, government agencies, and startups to drive digital transformation. Microsoft also invests heavily in cloud skill development and AI innovation, reinforcing its position as a key player in the Indian technology ecosystem.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the India cloud computing market report are Oracle Corp., Salesforce, Inc., Wipro Ltd., Infosys Ltd., Tata Consultancy Services Ltd., and Adobe Inc., among others.
Stay ahead in a fast-evolving digital landscape with our India cloud computing market trends 2026 report. Explore how hybrid models, SaaS growth, and government digital initiatives are shaping demand. Download a free sample today to access strategic insights, forecasts, and key developments fueling India’s cloud infrastructure and services market. Make informed decisions with Expert Market Research.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 23.33 Billion.
The market is projected to grow at a CAGR of 27.30% between 2026 and 2035.
Key strategies include expanding data center infrastructure, adopting hybrid cloud models, fostering public-private partnerships, promoting SaaS platforms, aligning with data localization norms, and supporting digital initiatives like Digital India and ABDM.
The BFSI sector exhibits highest growth rate, as it is used for secure data storage, real-time analytics, fraud detection, and digital banking services.
The major players in the market are Amazon Web Services, Inc., Alphabet Inc., IBM Corp., Microsoft Corp., Oracle Corp., Salesforce, Inc., Wipro Ltd., Infosys Ltd., Tata Consultancy Services Ltd., and Adobe Inc., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Service |
|
| Breakup by Deployment |
|
| Breakup by Enterprise Size |
|
| Breakup by End Use |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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