New Delhi, March 17 -- At the start of 2025, the Indian information technology (IT) sector was poised to see a reversal of fortunes during the year. Robust US economic growth and interest rate cuts by the US Federal Reserve were seen as likely drivers, giving the sluggish client expenditure in the key banking and healthcare segments an impetus. This was supposed to culminate in higher revenue visibility for FY26, paving the way for a revival. But this narrative is losing steam just three months into the year.

The global economic landscape has suddenly become more dynamic than anticipated; consequently, the IT sector is staring at increased potential downside risks rather than positive catalysts.

As things stand, the US Federal Reserve i...