Trump's Tariffs: The Hidden Opportunity for Indian IT Firms

Indian IT companies are dealing with a changing environment as Trump tariffs hang over their heads. TCS and Infosys, with robust profitability, are in a better place to support higher costs. The industry is exposed to risks of US immigration policy shifts and lower discretionary IT spending. There is a ramping up of onshore US recruitment by companies as a hedge. Infosys's valuation premium has weakened with the company trading lower than TCS and HCL Technologies. The Nifty IT Index has plummeted 21%, indicating industry-wide anxiety. Even as there are doubts, some experts anticipate possible gains for India's exports of electronics if import tariffs are reduced as a reaction to US tariffs.

 

Source: CNBC TV18, Financial Express