India to be the biggest tech spender in APAC, expected to reach ₹5 trillion (approximately US$59 billion) in 2025.
Technology spending in the Asia Pacific (APAC) region is expected to slow down due to new US-imposed tariffs. Forrester’s initial forecast projected a 6.5% increase in tech spending in 2025, reaching US$722 billion, up from US$678 billion in 2024. However, rising uncertainty around trade and supply chains could reduce growth by 1–2 percentage points, according to the firm.
India Leads the Pack
Despite the global headwinds, India is expected to outpace the regional average. With a projected tech spend of ₹5 trillion (US$59 billion) in 2025, India continues to be the most significant tech spender in the region. Forrester’s VP, Ashutosh Sharma, emphasized the country’s momentum:
“India’s technology landscape is entering an unprecedented phase of growth and innovation.”
Driven by substantial enterprise investment, digital infrastructure upgrades, and rapid adoption of generative AI, India is forecast to maintain over 10% annual growth in tech spending. However, Sharma cautioned that challenges such as upskilling, regulation, and tariffs must be addressed to sustain long-term progress.
Tech Spending In Southeast Asia
Tech spending in 2025 will grow by 8.5% in Indonesia, 7.2% in Malaysia, 9.4% in the Philippines, 7.7% in Thailand, and 10% in Vietnam, totaling approximately US$69 billion. The strong growth is due to Southeast Asian governments actively promoting digitization and a growing focus on cybersecurity, with AI playing a key role in enhancing threat detection and online safety.
Frederic Giron, VP and senior research director at Forrester cautioned that the immediate economic headwinds and heightened uncertainty stemming from the new tariffs are likely to influence the pace, prioritization, and funding of technology initiatives in the coming months. “Business and tech leaders must engage in comprehensive scenario planning to anticipate various outcomes and develop adaptive strategies that ensure organizational resilience”, he added.