Gartner lowers IT spending growth to 7.5% on demonetisation impact

After a 2 per cent reduction, growth to stand at Rs 51, 892 cr in 2017

Technology researcher Gartner has revised downwards the growth of India's information technology (IT) spending to 7.5 per cent to $7.8 billion (Rs 51,892 crore) in 2017, due to the impact of demonetisation.

“This is down from Gartner's previous projection for 9.5 per cent growth this year,” said the firm in a note on Thursday. 

India’s gross domestic product fell to 6.1 per cent in the fourth quarter of 2016-17, primarily due to the impact of demonetisation. This growth rate was the lowest in four quarters. Construction and financial services were the most impacted. 

“The two per cent (downward) revision in our outlook is