Corporate Strategies

Indian IT and Industrials Show Resilience Globally

Indian IT and industrial sectors remain resilient globally, driven by domestic demand, diversification, policy support, and long-term growth innovation today!

divya.2525

Jan 31, 2026 - 09:47

Jan 31, 2026 - 09:46

0 495

Indian IT and Industrials Show Resilience Globally

This image represents India’s growing economic strength and financial progress.

Over the past few years, global markets have been anything but predictable. Geopolitical conflicts, trade disruptions, fluctuating commodity prices, and uncertain interest-rate cycles have weighed heavily on businesses worldwide. Yet, amid this volatility, India’s IT and industrial sectors have continued to show steady performance and adaptability.

Rather than retreating in the face of global uncertainty, these sectors have adjusted their business models, diversified their revenue sources, and relied on strong domestic fundamentals. This article examines the economic backdrop, sector-specific trends, and strategic shifts that explain why Indian IT and industrials remain resilient when many global peers are struggling.

The Global Economic Backdrop and India’s Position

Global Volatility Meets Domestic Stability

Global economic conditions remain fragile. Trade tensions, regional conflicts, and lingering supply chain disruptions continue to impact investment decisions across developed and emerging markets. Inflationary pressures and currency volatility have further complicated planning for businesses worldwide.

India, however, has managed to maintain relative economic stability. Strong domestic demand, infrastructure spending, and supportive policy measures have softened the impact of external shocks. A key indicator of this strength is industrial output, which rose by 7.8% in December 2025, marking the highest level of growth in over two years.

The Reserve Bank of India has also highlighted that the Indian economy continues to perform steadily despite external uncertainty, with manufacturing and services playing a central role in sustaining growth.

Trade Policy and Strategic Agreements

India’s growing network of trade agreements has added another layer of stability. The proposed Free Trade Agreement with the European Union, for instance, is expected to unlock export opportunities worth approximately ₹6.4 lakh crore.

For both IT services and manufacturing exports, improved market access reduces dependence on any single geography and helps counter global slowdowns. These agreements are increasingly important as companies look for predictable trade environments in an uncertain world.

Why the Indian IT Sector Remains Steady

Consistent Growth Despite Cautious Global Spending

Global IT spending has slowed as enterprises delay discretionary investments. Even so, Indian IT services continue to grow at a measured pace. Industry estimates suggest the sector could post 6–7% growth in FY27, despite ongoing caution in global markets.

This stability is largely due to the sector’s broad service mix. While traditional application maintenance still contributes significantly, growth is increasingly driven by digital services such as cloud migration, cybersecurity, data analytics, and platform engineering. These areas remain high-priority investments for global enterprises, even during economic slowdowns.

Moving Up the Value Chain

Indian IT companies are no longer dependent solely on cost-based outsourcing. A major structural shift has been the rise of Global Capability Centres (GCCs) in India. These centres now handle core functions such as product development, engineering design, and advanced analytics—work that was once limited to developed markets.

This transition allows firms to capture higher margins and build deeper client relationships. The expanding cybersecurity market further strengthens this trend. Valued at around $6 billion and growing at nearly 30% annually, cybersecurity services are becoming a key revenue driver for Indian IT firms.

Industry Leaders in Practice

Large players such as TCS, Infosys, Wipro, and HCLTech continue to report strong deal pipelines and long-term contracts. Their diversified client bases across regions and industries help offset slowdowns in specific markets. This balance between legacy contracts and new-age digital services provides a cushion during periods of global uncertainty.

Industrial Sector: Growth Driven From Within

Broad-Based Expansion Across Industries

India’s industrial sector is not merely holding ground—it is expanding. Growth in manufacturing, mining, and electricity generation has contributed to the recent 7.8% rise in industrial output, reflecting sustained production activity across segments.

This performance highlights the ability of Indian manufacturers to keep supply chains moving and capacity utilisation high, even as global conditions remain challenging.

Domestic Demand and Export Strength

A key factor supporting industrial growth is strong domestic demand. Infrastructure development, housing activity, and rising consumption continue to generate demand for steel, cement, machinery, and other industrial goods.

At the same time, India’s export base has become more diversified. Engineering goods, electronics, chemicals, and pharmaceuticals contribute meaningfully to exports, reducing reliance on any single sector or region. Government initiatives such as Production Linked Incentive (PLI) schemes have further encouraged investment in electronics, automotive components, and other high-growth manufacturing segments.

A Sector-Level Example

The steel industry offers a clear illustration of industrial resilience. Major producers, including SAIL, have reported solid growth despite global supply constraints and fluctuating raw material prices. Strong domestic demand and capacity expansion have helped offset external pressures.

Common Drivers Behind Sectoral Resilience

Structural Diversity and Innovation

One of India’s biggest strengths is economic diversity. Neither IT nor manufacturing relies heavily on a single export market or product category. This flexibility allows companies to pivot quickly when demand shifts.

In IT, client demand for digital transformation and cloud solutions continues to create new revenue streams. In manufacturing, domestic investment, automation, and export incentives are improving productivity and competitiveness.

Policy and Fiscal Support

Government policies continue to focus on capital investment, export facilitation, and ease of doing business. Trade agreements, tax incentives, and manufacturing support schemes help reduce risk for businesses navigating uncertain global conditions.

Growth projections of 6.8% to 7.2% for the coming fiscal year further reflect confidence among policymakers and investors.

Practical Strategies That Are Working

Client diversification: IT firms now serve clients across multiple geographies and industries, limiting exposure to any single economy.
Skill upgrades: Investments in cloud engineering, cybersecurity, and data analytics are improving long-term competitiveness.
Incentive utilisation: Manufacturers are using PLI schemes to expand capacity and scale operations efficiently.

Conclusion: Stability Built on Strategy

At a time when global markets face persistent uncertainty, the Indian IT and industrial sectors stand out for their steady performance and adaptability. Strong domestic demand, diversified business models, policy support, and a shift toward higher-value activities have helped these sectors maintain momentum.

Recent data on industrial output and IT growth prospects underline India’s ability to navigate external challenges without losing direction. Rather than reacting defensively, Indian businesses are investing, innovating, and positioning themselves for long-term growth.

In a complex global environment, this measured and strategic approach explains why Indian IT and industrials continue to remain resilient—and relevant.