Trade agreement boosts sentiment across Indian IT firms

THE INDIA-US TRADE deal will not have any immediate or direct impact on India's information technology services sector, as it does not address areas that materially affect IT exports such as work visas, cross-border data flows, digital trade rules or outsourcing norms.

- URVI MALVANIA

However, analysts and industry executives said the deal has improved sentiment around the sector by bringing greater clarity on bilateral trade policy, which could help clients firm up budgets over time.

Executives said the agreement does not alter the operating environment for Indian IT firms, whose revenues are driven largely by long-term contracts with US enterprises. Billing structures, delivery models and pricing dynamics remain unchanged, pointing to no near-term earnings impact. The US continues to account for about 55-60% of revenues for large Indian IT companies, making broader macro conditions and enterprise spending cycles more relevant than individual policy announcements.