The Allen Musk’s dog sector began to sweat, is it the new crisis?

– Stuff UnknownMarch 22, 2025, 06:34 IST

ELON MUSK DOGE IMPACT: IT -INDIAN COMPANIES have been affected by Elon Musk’s command. In the Accenture report, the decrease in the demand of IT companies and a decrease in spending has been said. At the same time, many analysts are great …Read more

Alan Musk … This name has created panic these days, including America. Donald Trump gave Dogle’s command to the Chief of Tesla after becoming the second president of America. The work of this newly constituted department is to improve the functioning of the government and reduce its expenses. However, the steps taken by Musk under the dose initiative have proven to be tension for Indian IT companies. At the same time, some analysts are also seeing it as a recession in the IT sector.

This has already been a challenge for you and now the analysts believe that even in the 2026 financial year, the industry will not obtain the expected improvement. According to a Reuters report, the recent report of the Ti Veteran Accenture has highlighted the decrease in demand and decreased discretionary expenditure.

The Indian index of IT has fallen by 15.3% so far this year and will be its worst quarter after June 2022. The actions of the main TCS, Wipro, Infosys and HCl Tech companies have fallen from 11.2% to 18.1%.

Accenture became ‘first victim of the technological sector’
Accenture, considered a global giant in the IT services sector and an indicator of the Indian IT industry, said in his report that customers are avoiding spending on new projects and that there is no significant increase in their budget.

Julie Spelman Sweet, CEO of Extense, also described the policies of the US administration as a reason for this recession. He said: ‘The Federal Region obtains about 8% of our global income and 16% of the total income of America. The new government is reducing government spending to increase efficiency, which has slowed the rhythm of new projects.

Global commercial stress will be recovered and difficult
According to the report, the commercial tension has deepened due to the increase in the US rate, which has increased the possibility of recession in the US market. The United States is the largest market for Indian IT companies, and the uncertainty there is directly affecting the IT sector in India.

Amit Chandra, deputy vice president of HDFC Securities, said: “What happened in the last two months has increased more uncertainty over the first half of fiscal year 2026. This can further reduce the recovery of the IT sector.”

The generative AI will also become a challenge
According to analysts of the institutional actions of Kotak, the speed of large agreements will be weak in fiscal year 2025, because IT companies can face an additional income reduction in the financial year 2026. In addition to this, the introduction of generation AI at the initial level can also become a challenge for IT Indian companies.

What sector shows signs of recovery?
Although there were indications of recovery in areas such as banking, financial and insurance services (BFSI) and medical care, recent instability has also put customers in ‘weight and surveillance mode in these sectors.

According to the report, the city investigation estimates that the income of covered IT companies can increase by 4% in fiscal year 2026, which will be equal to fiscal year 2025. Analysts said that Indian companies have a limited participation in the world recession, but due to this, competition in other areas can increase even more.