This is expected to grow further to USD 5.62 billion in 2022, Gartner said in a statement.
The continued trend of increased remote workers in 2021, will lead to an increase in spending on desktop-as-a-service (DaaS) and infrastructure-as-a-service (IaaS).
These segments are forecast to grow 47.7 per cent (to USD 73 million) and 52.2 per cent (to USD 1.44 billion), respectively.
"To build business resilience and minimize the impact of continued disruptions, investing in cloud is unavoidable. India has experienced consistent double-digit growth in cloud spending over the last three years, the pandemic only expedited the shift," he added.
Spending on Cloud Business Process Services (BPaaS) is expected to grow 9.2 per cent to USD 207 million, Cloud Application Infrastructure Services (PaaS) by 30.5 per cent to USD 997 million, Cloud Application Services (SaaS) by 20.8 per cent to USD 1.41 billion, and Cloud Management and Security Services by 18 per cent to USD 317 million in 2021.
Gartner said spending on SaaS and cloud management and security services will experience double digit growth in India for the first time.
"SaaS has been pivotal in supporting the sudden increase in the mobile workforce, as well as customers, in 2020. Learning from this, Indian CIOs will continue to build on the above trend as they move towards a composable business environment," Nag said.
Within SaaS, customer experience and relationship management and content services will be the highest growing segments in 2021, forecast to grow 24.9 per cent and 26.1 per cent, respectively, as per Gartner.
In 2020, spending on e-mail and authoring declined 0.2 per cent but this trend will reverse in 2021, it added. E-mail and authoring is expected to grow 25.1 per cent this year.
With the increase in remote workers by organizations due to the pandemic, more business is being conducted using email and collaboration tools, which will drive the growth of these services, it said.