The 2026 Observability Forecast: India Edition

New Relic’s 2026 Observability Forecast: India Edition, based on responses from 500 Indian IT and engineering leaders, finds that India leads global markets in AI adoption, AI-agent monitoring, AIOps, machine-learning monitoring, and OpenTelemetry standardisation, while also facing unusually high operational pressure and outage costs. Most respondents consider observability increasingly essential for managing AI-generated code, and adoption of coding assistants such as GitHub Copilot, Gemini Code Assist, and OpenAI Codex is widespread, although respondents are divided over whether AI has simplified or increased technology-stack complexity. High-impact outages occur multiple times daily for 31% of Indian organisations, with average downtime estimated to cost $2.43 million per hour, and third-party providers, network failures, and software deployments identified as leading causes. Although 42% of organisations have fully standardised telemetry collection on OpenTelemetry, enterprises use an average of six observability tools, creating fragmentation that may limit AI-assisted correlation and insight. The report concludes that organisations combining AI adoption and telemetry standards with unified observability platforms are more likely to achieve strong financial returns, whereas fragmented tool environments are associated with firefighting demands and higher outage costs.

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