Big AI bets, demand reboot: Indian IT sector `bytes’ into 2025 with cautious optimism

NEW DELHI: The Indian IT industry steps into 2025 with hope and optimism of improved tech spending and stronger deal pipeline as businesses across-the-board take bold AI bets, but all eyes are on global macroeconomic cues as well as the US’ stance on trade and high-skilled immigration as President-elect Donald Trump returns to White House next month.

With Q2 report card of most IT heavyweights fuelling hopes of an improved client demand over the coming quarters – industry pundits predict a notable rebound in growth and profitability metrics materialising by late 2025 or the second half of FY26, if all goes well.

Experts also expect tech M&A counters to buzz right through 2025, with big data, cloud and Gen AI (Generative AI) acting as major draws for companies with takeover appetites. Meanwhile, the IPO market – heady from 2024 highs – seems all primed up for yet another blockbuster year as a slew of tech startups are readying for a market debut to capitalise on euphoria.