The researcher looks at adoption and applicability of cloud computing to e-governance in India. Data has been gathered via structured questionnaire from stakeholders of various businesses – public & private sector of India, including Indian IT companies that offer cloud computing solutions to clients. The study takes a balanced and unbiased view of cloud computing with focus on India, to figure out the key factors that lead to its adoption using factor analysis and whether these factors could be the drivers for its adoption in e-governance. Cloud computing has picked up in developed markets and is starting to pick up in India. For enterprises, SMB, Government, NGO & individuals – it reduces initial investments, results in cost savings, gives flexibility, scalability, service on demand, device independency and anytime accessibility and reduces key data loss in the event of hardware crash, loss or theft. However, it has issues like confidentiality, information security, legal & regulatory challenges and malicious attacks as data gets stored in a distributive internet cloud, generally beyond any nation\\\’s geography. The intended target audience for this research are Union & State Governments, Large Municipal Corporations, National Federation of Urban cooperative and credit bank societies Ltd.