India's Cloud Market Is Growing at 24% — But Most Enterprises Are Still Using It Wrong

Jan 2026
6 min read
India's Cloud Market Is Growing at 24% — But Most Enterprises Are Still Using It Wrong

A $24 Billion Market by 2028

India's public cloud market reached $9.2 billion in 2024 and is forecast to cross $24 billion by 2028, growing at approximately 24% annually according to Gartner. AWS, Microsoft Azure, and Google Cloud have all made significant India-specific infrastructure investments — AWS launched its second India region in Hyderabad in 2022, Azure operates regions in Pune and Chennai, and Google Cloud's Mumbai region serves as a major Southeast Asia hub.

Impressive Adoption, Less Impressive Usage

The adoption numbers are impressive. What is less impressive is how that cloud capacity is being used. A 2025 McKinsey analysis of enterprise cloud deployments across Asia found that 65% of cloud spending was on workloads that had been "lifted and shifted" — moved from on-premises data centres to cloud virtual machines with no architectural change.

The Cost of Staying Half-Migrated

These deployments capture some of cloud's benefits — reduced hardware capital expenditure, improved geographic redundancy — but miss the transformational ones: elastic scaling, consumption-based pricing, and access to cloud-native services like managed databases, serverless compute, and AI/ML APIs. Flexera's 2025 State of the Cloud report found that the average enterprise wastes 28% of its cloud spend on unused or idle resources — a figure that translates to hundreds of crore annually for large Indian enterprise cloud deployments.

Cloud Is a Philosophy, Not Just Infrastructure

The most sophisticated cloud-native organisations — the Flipkarts, Nykaas, and Razorpays of the Indian ecosystem — design applications specifically for cloud: stateless services that scale horizontally, managed databases that handle replication automatically, event-driven architectures that cost nothing when idle and scale instantly when demand spikes.

Key Takeaway

Cloud is not infrastructure modernisation. It is a different philosophy of building and operating software. The enterprises that adopt the philosophy — not just the infrastructure — are the ones extracting the transformational value the investment promises.

By Grey Platforms

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