India’s $280 Billion IT Services Industry Likely to Face Setback Due to Trump Administration’s Reciprocal Tariffs

 India’s IT services sector, a crucial pillar of the economy with $205.2 billion in exports during FY24, is demonstrating resilience despite increased US tariffs. 

The United States, which contributes nearly 70% of India’s IT export revenue, remains largely unaffected by these tariffs. 

However, the introduction of reciprocal tariffs could put pressure on industries dependent on IT services, leading to an increased focus on cost optimization and automation as companies adjust to the changing trade landscape.

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