Trump’s pro-business policies to benefit India’s IT sector, Wipro chair says
2024.11.19 11:26
By Haripriya Suresh and Sai Ishwarbharath B
BENGALURU (Reuters) – Donald Trump’s presidency in the United States is going to be “pro-business and pro-growth” and good for the tech services industry, Wipro (NYSE:) Executive Chairman Rishad Premji said at an event in the southern Indian city of Bengaluru on Tuesday.
Indian companies and investors will keep a close eye on Trump’s return to the White House to assess the impact of his policies on the country’s $254 billion IT services industry.
Premji said the conversation on fewer taxes and regulations during Trump’s presidency could be powerful and “bodes well for the business and how customers will spend.”
“The government is very pro-business and pro-growth, which helps all of our customers, which ultimately helps partners here in India and world over,” he said, pointing to the potential corporate tax rate cuts and easier business regulations.
This shift in perspective comes after IT services players underwent consecutive difficult quarters of clients holding back spending, particularly on discretionary projects, due to macroeconomic concerns and inflationary pressures.
Premji noted that IT firms must remain “watchful” about inflationary pressures, particularly in regard to tariffs and how immigration policies evolve.
Stricter U.S. policies on outsourcing and restrictions on H-1B work visas could weigh on India’s IT sector, which relies heavily on the U.S. market, a note by CareEdge Ratings said.
“Indians receive the highest number of work visas from the United States, mainly for the IT sector,” the note added.
The sector also relies on U.S.-based clients for a significant portion of its revenue.
The overall impact of Trump’s second presidency should be “positive” on India’s IT sector, JPMorgan said in a note earlier this month.
“Starting with the positives, extension and deepening of U.S. corporate tax rates could support a bounce-back in enterprise technology spending,” the brokerage said.
