As Donald Trump secures his return to the White House, India’s IT and technology industry is preparing for the potential impacts on business relations, workforce dynamics and trade expansion between the US and India. The IT industry trade association Nasscom and industry leaders have interestingly expressed optimism about continued collaboration with the US, although uncertainties around H-1B visa policies, outsourcing regulations and trade tariffs remain.
Nasscom’s Message Of Optimism And Partnership
Nasscom, the tech industry body in India, extended its congratulations to President Trump on his election victory, underlining the crucial role that the tech industry plays in US-India relations. In a statement, Nasscom said, “The tech sector is the key lynchpin of the US-India bilateral engagement. The US is the largest market for India’s USD 254 billion tech sector, where its overall contribution is USD 80 billion to US GDP. Importantly, the industry plays a key role in supporting US companies in strengthening the US economy.”
With the US serving as a primary market for Indian IT companies such as Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and many more, Nasscom stressed on the sector’s economic contribution and its collaborative role in technological innovation. The association further expressed eagerness to work closely with the new administration on shared priorities such as artificial intelligence (AI) and cybersecurity, citing a commitment to a “democratic, inclusive and sustainable innovation ecosystem.”
More than 80 per cent of India's IT export revenue is generated from the US, leaving it exposed to shifts in American visa regulations
Speaking with BW Businessworld, Neeti Sharma, CEO at TeamLease Digital, explained that during the previous Trump administration stricter H-1B visa rules forced Indian IT companies to adapt by hiring more locally in the US and creating jobs there (over 1,75,000 by 2019). However, this shift helped Indian IT companies better serve their US clients onshore, despite the challenges. Additionally, the growing demand for digital transformation in North America provided opportunities for Indian IT firms to lead in innovation.
“We may see mixed effects on India’s economy. Stricter visa rules could impact Indian IT professionals in the US, but his push to reduce reliance on China might open doors for Indian industries like tech, pharma, and manufacturing. Meanwhile, the growth of American Global Capability Centres (GCCs) in India is likely to continue, as US companies increasingly invest here for skilled talent and strategic offshore operations.”
-Neeti Sharma, CEO, TeamLease Digital on upcoming Trump Presidency
Growing Demand For Skilled Indian Workforce
Ramesh Alluri Reddy, Chief Executive Officer at TeamLease Degree Apprenticeship, echoed Nasscom's sentiment of strengthening US-India ties under Trump’s presidency, especially in areas of trade and workforce development. “The recent US elections, confirming Donald Trump’s return, marks a promising chapter in the deep-rooted US-India partnership, with substantial potential for growth in trade, skilled workforce demand, and collaborative economic development,” he said.
He stressed the role of US-based companies establishing Global Capability Centres (GCCs) in India, which serve as key sites for innovation, development and global operations. “Numerous US companies are eager to tap into India’s skilled labour pool, setting the stage for job creation and reinforcing India’s standing as a global talent hub,” Reddy added.
During his victory speech on 6 November in Florida, Trump said, “Immigrants are welcome, but they must enter legally.”
Potential Policy Challenges
Despite the optimism, Trump’s first term was marked by restrictive immigration policies that impacted the H-1B visa programme, a key pathway for Indian IT professionals working in the US. These visa restrictions prompted Indian IT firms to increase hiring in the US and establish local delivery centres, raising costs and adjusting traditional business models. A potential second term could see a continuation or tightening of these restrictions, pushing Indian firms to further localise US operations.
Between 2016 and 2020, the average denial rate for H-1B visas soared to around 18 per cent, a big rise compared to just 3.2 per cent under President Biden's administration
Another area of concern is Trump’s “America First” policy, which previously pressured American companies to reduce outsourcing and focus on creating domestic jobs. If this policy is backed, Indian IT companies could face increased pressure to limit offshore operations, potentially impacting their margins and operational models.
Trade Growth And Economic Integration
Despite these potential challenges, trade data mentions a robust economic relationship between the two nations, which thrived even during Trump’s first presidency. US exports to India saw an 84 per cent increase from 2012 to 2021, while imports from India grew by approximately 81 per cent during the same period.
“Trade between the two countries grew robustly from 2017 to 2021 during Trump’s previous presidency, underscoring the potential for another era of strong trade expansion,” said Reddy commenting on this growth.
Path Forward For The Indian IT Industry
Indian IT companies have already begun diversifying by increasing investments in other global markets, such as Europe and the Middle East. Yet, the US remains an irreplaceable partner, particularly for sectors like software development, digital transformation and cloud services. As Trump’s administration signals its intentions, Indian IT companies may need to further strengthen local hiring and innovation to adapt to evolving US policy frameworks.
With a strong foundation of trade and technology partnerships, industry leaders in India are hopeful that this new chapter will build on past successes, though cautious about adapting to potential policy shifts. “As the largest and oldest democracies, we look forward to collaborating on various areas, including AI and cybersecurity,” Nasscom said.
