Tariffs, tech and the new IT order

Trump's trade war redrew the global tech map. India, once on the sidelines, is now centre stage, shifting from hardware-driven exports to service-centric agility. Here's how tariffs sparked a long-term pivot for India's IT ecosystem

- ASHOK PANDEY BHARTI TREHAN

From malware that mutates in seconds to phishing powered by deepfakes, the game has changed.

Attackers now rely on AI. Defenders must respond in kind. What we're witnessing is no longer just cybercrime; it's a face-off between intelligent bots.

When the United States slapped a steep 50% tariff on Indian goods, it did more than dent spreadsheets. It rewired supply chains, strained pricing models, and forced India's IT channel to confront uncomfortable questions. Could the industry survive on hardware alone? Could service revenues insulate against global trade shocks? Could India finally emerge as a serious node in the global tech supply network?

The answers are now playing out in real time and they're not subtle. The changes triggered by the trade war are shaping not just exports, but the future identity of India's IT ecosystem.

India’s new role: fallback or future hub?

Initially seen as a tactical shift to offset China dependence, the movement of supply chains into India is fast becoming a long-term realignment. Many global vendors, wary of geopolitical overexposure to a single region, have started to look at India not just for low-cost labour, but for credible manufacturing, assembly, and logistics capabilities.

Policy incentives like the Production Linked Incentive (PLI) schemes have further accelerated this trend. Electronics assembly, component manufacturing, and even end-user packaging are now increasingly being done within Indian borders. There is also growing investment interest in areas like semiconductors and server infrastructure.