Team siliconindia

• India is actively engaging with global powers to protect its IT industry from potential US outsourcing restrictions.
• The tech sector is set to grow by 5.1% this year, expected to hit $300 billion by FY26.
• Government pushes local electronics manufacturing to build resilience and create jobs.

India is stepping up global discussions to protect its booming $300 billion IT sector, as fears rise over potential outsourcing restrictions from the United States. Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, said the Indian government is in constant talks with international corporations and foreign governments, including the US, to ensure that any future protectionist policies don't hurt the country’s tech industry.

Concerns have grown following comments by Peter Navarro, a former trade advisor to Donald Trump, who suggested tariffs on foreign remote workers. Such measures could directly impact India's IT services, which depend heavily on US clients and employ over 5.6 million people.

Vaishnaw emphasized that India is working with both multinational firms and governments in regions like Europe, Japan, and Southeast Asia. The focus is on maintaining growth and protecting high quality jobs in the industry. He said, “We are engaging proactively to ensure the sector remains strong and continues to expand”.

The Indian tech industry is expected to grow by 5.1% in FY25, reaching $282.6 billion in revenues, according to Nasscom. It is set to cross the $300 billion mark in FY26, with a projected 126,000 net new jobs.

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To further strengthen the sector, the government is also pushing for domestic growth through increased electronics manufacturing and supply chain localization. Vaishnaw highlighted that this twin strategy defending global opportunities while boosting local capabilities, will help the sector remain resilient in a changing geopolitical landscape.

With global uncertainties on the horizon, India’s proactive stance aims to keep its IT engine running strong.