- Published on July 3, 2025
- In AI Features, IT Services
Indian IT Set for Tepid Q1 as Global Risks Mount
Analysts predict a muted Q1 for the Indian IT sector in 2025-26, influenced by geopolitical headwinds, tariff uncertainties, the GCC boom, the US economic slowdown, and notably, the industry’s legacy challenges.
Image by By Nalini Nirad
- By C P Balasubramanyam
Indian IT once confidently walked the path it had paved for itself. There was growth driven by headcount expansion, steady demand ensured by low-cost delivery, and a sense of business predictability.
However, with artificial intelligence steadily reshaping the landscape, the industry now finds itself trying to sprint in shoes made for walking. This picture is hard to miss and stands out sharply when recent data is examined. AIM held conversations with industry analysts, who also support the narrative.
While the first quarter isn’t expected to bring major surprises, it confirms that a transition is underway. The old pace no longer fits the new terrain, and what companies overlooked before has become a pressing necessity.
The Numbers Speak
UnearthInsight founder Gaurav Vasu des
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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