Why Donald Trump’s Presidency Could Be a Boon for the Indian IT Sector
Rishad Premji of Wipro sees Trump's presidency boosting Indian IT with pro-business policies, but visa and inflation challenges remain crucial.
How Donald Trump’s Pro-Business Policies Could Positively Impact the Indian IT Sector: Insights from Wipro’s Rishad Premji
The likely return of Donald Trump to the White House is seen as a silver lining for Indian IT firms. According to Rishad Premji, executive chairman of Wipro, Trump’s “pro-business and pro-growth” policies could be potentially very beneficial for the $254 billion Indian IT services sector. Speaking in a Bengaluru event, Premji underlined that the hope of fewer taxes and reduced regulations under the Trump administration may encourage more corporate spending – indirectly benefiting tech firms worldwide.
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Premji highlighted that a benign business climate in the US has direct implications for Indian IT, most of whose revenues are derived from clients based in the US. When Trump first came to power, talks of corporate tax cuts and relaxed business regulations supported the growth of the enterprise, thus possibly reviving spending on technology services.
However, euphoria is somewhat tempered by tougher immigration policies. Indian IT firms rely heavily on H-1B visas that have earlier been curtailed by Trump’s administration. Such visas enable Indian tech professionals to work in the U.S. and are crucial in maintaining uninterrupted client relations. CareEdge Ratings noted that India receives the highest number of U.S. work visas, especially for the IT sector, which underlines a need for a balanced approach to immigration.
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Despite recent headwinds, analysts still hold an optimistic view that a Trump presidency will probably help these trends reverse. Indeed, JPMorgan analysts note that prolonging corporate tax breaks could be an impetus to strengthen enterprise tech spends, providing room for Indian IT companies to bounce back and prosper.
While the Indian IT sector’s major concern in the near future would be regarding policy changes, it still continues to be optimistic about having a pro-business U.S. administration.
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