Indian IT sees growth opportunities under Trump
Rishad Premji of Wipro believes Trump’s pro-business policies could drive client spending, boosting India’s $254 billion IT sector.
Donald Trump’s potential return to the White House is viewed as a positive development for India‘s IT services sector, according to Wipro Executive Chairman Rishad Premji. Speaking at an event in Bengaluru, Premji noted that Trump’s ‘pro-business and pro-growth’ policies, including lower taxes and fewer regulations, could encourage greater spending by corporate clients. This comes after challenging quarters for Indian IT firms, with clients cutting back on discretionary projects due to global economic uncertainty.
Premji also highlighted the need for caution regarding inflation, tariffs, and potential changes in United States immigration policies, particularly H-1B visas, which are crucial for Indian IT workers. The US account for a significant portion of the sector’s revenue. Stricter outsourcing rules could pose challenges, but analysts remain optimistic about overall growth.
JPMorgan analysts echoed this sentiment, stating that extended US corporate tax benefits could boost technology spending, further benefiting Indian IT companies. The sector will monitor Trump’s policies closely for long-term impact.