Indian IT firms face structural headwinds, Gen AI yet to deliver: HSBC India

Indian IT services firms are unlikely to return to their historical double-digit growth rates as structural challenges weigh on the industry, according to Yogesh Aggarwal, Head of Equity Research at HSBC India. While the sector could see a cyclical recovery in the near term, from a medium to long-term perspective, growth will likely stabilise at 4-5%, he said in an interaction with ET Now. Further, the rupee has depreciated by about 2.5-3% over the last 25 years, contributing to overall EPS growth and supporting this expectation for medium to long-term investors.