AI Wave Leaves Indian IT Behind - Tough Road Ahead, Says Market Expert

Market expert Sudip Bandyopadhyay issues a strong cautionary view on the Indian IT sector, warning that the industry faces structural challenges, not temporary setbacks. While buybacks, cash reserves, and weak rupee offer short-term comfort, fundamentals are weakening as global technology shifts toward AI-based delivery models, where Indian IT has fallen behind with no major proprietary AI products. This dependency will compress margins and limit revenue growth to low single digits, especially as US corporates delay or cut non-critical technology spending. However, he highlights bright spots: niche IT firms connected to travel & tourism, and those supporting the ICE to EV transition, like Tata Technologies, are positioned for strong performance. His advice: Be selective, not broad-based in IT exposure.