Wipro chairman Rishad Premji on how Donald Trump's return means 'good news' for Indian IT companies

Wipro Executive Chairman Rishad Premji is optimist about Donald Trump's return as President of the United States. Speaking at an event in Bengaluru on Tuesday, November 19, Premji said that President Trump's government will be "pro-business and pro-growth," benefiting the technology services industry.

Indian companies and investors are closely monitoring Trump's return to the White House to gauge the impact of his policies on India's $254 billion IT services industry. The US is one of the biggest markets for Indian IT industry.

Donald Trump's return "bodes well" for It industry

Premji highlighted that discussions on reduced taxes and regulations during Trump's presidency could be influential and "bode well for business and customer spending."

"The government is very pro-business and pro-growth, which helps all of our customers, ultimately benefiting partners here in India and worldwide," he said, referencing potential corporate tax cuts and simplified business regulations.

This perspective shift follows challenging quarters for IT services companies, with clients reducing spending on discretionary projects due to macroeconomic concerns and inflationary pressures.

Premji emphasized that IT companies must remain "watchful" of inflationary pressures, particularly regarding tariffs and evolving immigration policies.

JPMorgan sees Donald Trump's win "positive" for India's IT sector

JPMorgan noted earlier this month that the overall impact of Trump's second presidency should be "positive" for India's IT sector.

"Starting with the positives, the extension and deepening of U.S. corporate tax rates could support a rebound in enterprise technology spending," the brokerage said.

Concerns on Trump's H-1B visa policy

However, there are concerns on Donald Truump's tough stance on immigration. Stricter U.S. policies on outsourcing and H-1B work visa restrictions could impact India's IT sector, which heavily relies on the U.S. market, according to a note by CareEdge Ratings.

"Indians receive the highest number of work visas from the United States, mainly for the IT sector," the note added. The sector also depends on U.S.-based clients for a significant portion of its revenue.