US Tariffs and Global Risks Cloud India IT Demand Outlook
The India IT demand outlook remains uncertain as US tariff risks and geopolitical factors affect client confidence, according to Wipro’s chairman. Rishad Premji shared these insights at the company’s annual shareholder meeting held Wednesday.
India’s IT industry, valued at $283 billion, is under pressure as clients cut back on non-essential spending. Premji emphasized that while the environment hasn’t worsened, it hasn’t improved either. Customers, he said, are adapting to ongoing global instability.
Discretionary Spending Faces Delays in Key Markets
Premji noted that clients are focusing more on cost-saving technology solutions than on innovation or optional projects. This cautious approach has delayed project launches, especially in the US, which is India’s largest IT market.
A recent industry survey showed that 40% of tech leaders have postponed discretionary projects due to uncertainty over tariffs and budget priorities.
Although Wipro sees some early signs of discretionary spending returning in certain sectors, recovery remains limited.
Earnings Disappoint Across India’s Top IT Firms
Major Indian IT firms have reported slow growth in the June quarter. Tata Consultancy Services (TCS), the industry leader, missed revenue forecasts. Its CEO, K Krithivasan, said project delays had worsened, making growth projections uncertain.
HCLTech also reported lower-than-expected earnings and revised its profit margin forecast for 2026.
As the India IT demand outlook remains clouded by global and policy-driven risks, industry leaders urge caution while staying optimistic about long-term opportunities.
