In a major policy shift, U.S. President Donald Trump has decided to take direct aim at India’s lucrative IT sector — a move that could deliver a massive blow to the Indian economy. According to reports, Trump is preparing restrictions on American tech companies outsourcing their projects to India, a practice worth over $62 billion annually for New Delhi.
For years, U.S. companies have relied on India’s cheaper labor market to cut costs, outsourcing the bulk of their IT operations to Indian firms. This has not only fueled India’s IT boom but also created millions of jobs in the sector. However, if Washington enforces the ban, experts warn that India’s IT market and employment sector will face a devastating setback. At the same time, the U.S. economy is expected to gain significantly, with over 300,000 new jobs projected for American workers.
The timing of this development is critical. India, already struggling with tense relations with neighbors Pakistan and China, has long depended on Washington for global recognition and support. New Delhi placed immense strategic importance on its ties with the U.S., but Trump’s latest move is being seen as a blunt reminder that America will prioritize its own workforce over India’s economic ambitions.
Analysts note that for India, this decision is not just an economic jolt but also a diplomatic embarrassment — a clear signal that despite years of dependence and loyalty, Washington has now shown New Delhi the cold shoulder.
