While India’s IT services sector remains shielded from the latest US tariff hikes, industry experts warn of broader economic ramifications. Experts also stress that India’s IT services sector, a major economic driver with $205.2 billion in exports in FY24, remains resilient, buoyed by strong US-India collaboration and demand for AI, cybersecurity, and enterprise tech solutions. However, reciprocal tariffs may pressure industries reliant on IT spending, prompting businesses to optimise costs and automate processes.
On Wednesday, US President Donald Trump announced 27 per cent reciprocal “Liberation Day” tariffs on India’s exports to the US, effective April 9, 2025, primarily targeting physical goods like electronics, textiles, gems, and jewellery.
Shetal Mehta, Co-Founder of Suchi Semicon, said India’s IT services sector remains unaffected, as the tariffs do not apply to service-based exports. This is significant, since IT services contribute substantially to India’s economy, with software services exports reaching $205.2 billion in FY24. The US remains the largest market, accounting for nearly 70 per cent of India’s IT export revenue.
