This IDC study provides an overview of the IT spending trends by the government and education sector in India. It also provides insights into important industry dynamics and opportunities; emerging trends, business challenges, and issues; and the role that IT is playing to exploit opportunities and meet challenges. This study also provides insights into the componentwise IT spending patterns for major product categories in the vertical in 2006 as well as a forecasts on an annual basis up to 2011.

"The total IT spending by the government and education sector in India was US$1,734.4 million in 2006 and is expected to increase at a compound annual growth rate (CAGR) of 16.8% throughout the forecast period to US$3,770.8 million by 2011. The major contribution will come from hardware, which is forecast to increase at a CAGR of 19.5% from US$898.7 million in 2006 to US$2,188.9 million by 2011. The other growth drivers include the packaged software and service segments, which are forecast to increase at CAGRs of 21.2% and 16.3%, respectively. The India government embarked on egovernance initiatives and will keenly focus on some of the more immediate need-based projects such as establishing statewide area networks, state datacenters, common information centers; promoting eprocurement; building capacities; computerizing land records and regional transport offices; and establishing agriculture portals. Educational institutions in India with the support and dedicated efforts of the Ministry of Human Resource (HR) Development are looking to build their basic IT infrastructures up and develop networking with various branches spread across the country. The major education IT market segments include the PC, storage, networking equipment, software, and service segments," says Arpan Gupta, analyst, Verticals Research, IDC India.