Indian IT services to be directly hit by US tariffs

Export-led Indian IT sector will not be directly hit by US President Donald Trump’s tariff order on goods, but there could be worrisome indirect bearings on it due to possible slowdown in decision-making and GDP growth in America due to higher tariffs, which may then cloud the demand from specific verticals, according to some analysts.

While the USD 250-billion Indian IT pack — that derives a sizeable chunk of its revenue from servicing US clients — is on a wait-and-watch mode to assess the full impact as it unfolds in coming quarters (as well as the trade negotiations in offing that could sway equations) they remain hopeful that any near-term slowdown in growth in America would, in fact, nudge more companies to chase efficiencies through outsourcing deals and tech adoption in the long term.