Indian IT Industry Eyes $300 Billion Despite Layoffs and Global Headwinds

The Indian IT industry is going through a period of change. Recent news reports from leading Indian and international publications show that many top companies are facing weak demand from clients, especially in the United States.
In the April to June quarter of the current financial year, overall growth in profits was just around 7.5 percent for top firms in the Nifty 50 index. This is mainly because of low demand in the IT and banking sectors. Experts have also reduced their earlier expectations of higher growth.

At the same time, some large IT companies are cutting down on jobs. Tata Consultancy Services (TCS), one of the biggest players, has reduced its workforce by about 2 percent, which means more than 12,000 people have lost their jobs.

TCS is now focusing more on AI-based work and looking for new markets. On the other hand, Capgemini India plans to hire up to 45,000 people in 2025. They want to build a team that is ready to work with AI.

There are also concerns about new tariffs in the United States. These tariffs are not directly on IT services, but they may still cause problems. American clients may cut down on budgets, delay projects, or spend less money. Political issues and new tax rules are also adding pressure on the industry.

Even with these problems, Indian companies are investing more in new technologies. They are working on artificial intelligence, robotics and quantum computing. Bengaluru is becoming an important place for such work.

It is moving from just providing services to becoming a centre for deep tech. SAP Labs India has opened a second research centre near the Bengaluru airport. They will focus more on AI work there. Google is also investing heavily in data centres in India. These centres will run on clean energy.


Hiring trends are changing. Indian companies like TCS and Infosys are hiring fewer people now. They are training their current employees to work in AI and cloud computing. But global companies like Google and Meta are hiring more people in India. They want skilled workers for advanced technology roles.

In spite of all this, the IT industry in India is still growing. It may reach USD 282 billion in revenue this year and cross USD 300 billion next year. - TWL Bureau