Nasscom Warns Of Indirect Impact Of US Tariffs On Indian IT

India’s IT industry body Nasscom has raised concerns over the indirect impact of US tariffs on the sector. According to its President, while Indian IT services are not directly subject to tariff measures, the broader economic consequences are influencing client spending patterns and outsourcing strategies.  

Key Highlights  

• Nasscom President highlights indirect effects of US tariffs on Indian IT  
• Tariffs increase costs for global clients, reducing outsourcing budgets  
• Supply chain disruptions affect technology adoption and project timelines  
• Indian IT firms face pressure to maintain competitiveness amid global uncertainty  
• Industry monitoring developments to safeguard growth and client relationships  

Strategic Impact  
The indirect impact of US tariffs underscores the interconnected nature of global trade and technology services. For India’s IT industry, which relies heavily on US clients, tariff-driven cost escalations could slow demand and affect margins. Nasscom’s warning signals the need for diversification of markets and stronger domestic innovation to mitigate external risks.  

Sources: Reuters, Economic Times, Business Standard