India has been hit by repeated bombings this year and most recently saw 10 heavily-armed Islamist militants kill 163 people across the financial capital Mumbai, including at two luxury hotels and the main railway station.
A report released on Tuesday by global consultants Frost and Sullivan said beefed-up security was needed at airports, hotels and religious places.
'The continuous threat of terrorism, the development of India's infrastructure and the eventual development of the civil aviation capacity, promise to expand overall security spending to over nine billion dollars,' said senior consultant Friso Buker.
India is estimated to have spent 800 million dollars in 2007, Frost and Sullivan analysts estimate.
'In the light of the horrendous deaths of innocent civilians, public and private institutions will have to become more pragmatic to develop the 'last line of defence' with hotels, religious buildings and tourist destinations.'
Intelligence lapses and lax security have been highlighted in the wake of the Mumbai attacks, as well as deficiencies in the police and security services in terms of numbers, training and resources.
The Frost and Sullivan report said hotels would have to undertake 'previously avoided' security measures - more manpower and sophisticated technology.
Self-diagnosing CCTV systems, automatic wireless image downloads and passenger screening technologies would boost civil security investments, the report said.
Richard Dailly, managing director with risk consultants Kroll in Mumbai, said India had to raise its game to detect and deter future attacks.
'We expect India to pay attention to training security personnel. It is logical that the country will also spend more towards technology and training forces,' he told AFP.
'Training, general awareness and knowing what to look for is vital in preventing a terror attack.' -- AFP