Indian IT sector not directly hit by US tariffs, yet ripple effects could be substantial: EY India

Though the Indian IT services sector is not directly hit by the newly-announced 25% US tariffs on goods, the ripple effects could be “substantial” as rising input costs may prompt US companies to scale back discretionary tech spends, Nitin Bhatt, technology sector leader at EY India said on Thursday.

The tariff announcement comes at a time when the export-led Indian IT industry is grappling with macroeconomic uncertainties and the advent of Artificial Intelligence (AI).

“While the Indian IT services sector isn’t directly hit by the newly announced 25%…