The US 'Wild Card': Navigating Tariff Threats in the Indian IT Sector

The Indian IT sector faces uncertainty as US tariff threats could significantly impact the industry. Nasscom President Rajesh Nambiar highlights the importance of the US market while Infosys CEO Salil Parekh suggests that a strengthened American economy could benefit Indian companies. The sector adapts through local hiring and near-shoring strategies.

The United States, the largest market for India's $282 billion IT industry, is being seen as a 'wild card' amidst emerging tariff threats, according to Rajesh Nambiar, president of lobby group Nasscom.

In a recent address, Nambiar indicated that tariffs may pose the biggest challenge to the Indian IT sector, which depends on the US for 60-62% of its revenues. This uncertainty follows President Donald Trump's threats to impose reciprocal tariffs, aimed at bolstering the American economy.

At Nasscom's annual NTLF event, Infosys CEO Salil Parekh noted the potential benefits for Indian IT if US companies thrive under Trump's policies. He underscored Infosys' resilience, citing increased local hiring and near-shoring as strategies to mitigate H-1B visa reliance. Similarly, HCL Technologies CEO C Vijayakumar downplayed the current impact of H1-B visas on the sector.