The Indian IT industry, with a revenue of $254 billion last year, sees no trouble in Donald Trump coming back to power after a gap of four years.

Despite challenges faced during Trump’s previous administration, the industry is now on more stable ground, reducing its reliance on H1B visas. 

The US is the biggest export market for the Indian IT industry. It contributes about 55 per cent of the country’s overall IT-BPM exports of $200 billion.

With a goal of reaching $300 billion by 2030, the industry believes it has evolved to a point where it is less dependent on H1B visas.

The industry anticipates that political stability in the US, following the election, will lead to a more robust US economy and increased IT spending.

The US remains the largest market for the Indian IT industry, which clocked IT exports of about $200 billion last year.

While Trump’s stance on immigration and outsourcing was previously a concern, industry experts believe that the current situation is different. B V R Mohan Reddy, former Chairman of Nasscom and Executive Chairman of Cyient Limited, stated that Indian companies have progressed in both service delivery and hiring local talent for specific roles.

“We don’t depend much now on H1B visas. The Indian companies have graduated into the next level – not only in delivering services but also in attracting and finding the local employees for certain jobs,” he said.

While his opposition to immigration from South America and to low-end jobs given to outsiders, Trump’s views on people with good education augur well for India, he said.

Additionally, the industry is optimistic about the potential for improved bilateral trade due to the positive relationship between Trump and Indian Prime Minister Narendra Modi.

Market analysts also suggest that the potential for Trump’s return has already been factored into the IT sector’s performance.

Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers, stated that the market has already priced in this possibility, and any immediate volatility is unlikely. The focus will likely shift to broader macroeconomic factors and sector-specific drivers as the situation progresses.

“Until the new policies are in place, it’s hard to predict the full implications, but I remain cautiously optimistic. Overall, the worst seems to be behind us, and there could be some improvement for the sector in H2 FY25 as the political uncertainty settles and the economy stabilises,” he said.

“The focus will likely shift to broader macroeconomic factors and sector-specific drivers as we move forward,” he pointed out.

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