Washington/New Delhi: U.S. President Donald Trump is preparing to impose tariffs on Indian software exports, raising concerns across the country’s $300 billion IT industry. India already faces 50% tariffs on several goods, and extending duties to software could deal a severe blow to one of its most crucial sectors.
The proposed measures are expected to include outsourcing services and foreign remote workers. Industry experts warn the move would sharply increase operating costs for Indian IT companies, with the added risk of dual taxation, thereby denting profitability.
India's IT Inc on edge as US may impose tariffs on software exports https://t.co/xYq8GYgU9G
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Nearly 60% of India’s software exports are to the U.S., making it the single largest market for the sector. Analysts caution that higher costs could make Indian IT services less competitive, prompting American firms to scale back outsourcing.
Such a move could trigger falling revenues, declining profit margins, and job losses, experts say, adding that it would mark one of the sharpest shocks yet to India’s IT-driven economy.