Indian IT industries were in a sweet spot because of the cheap labor. They used to get projects from the world and then they deliver with less costs and thus the extra money was used for expansion and other things. Now with AI into picture, the big money starts to slow down, the new project spending is coming down and because of that Indian IT industry is taking a hit.
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In the year 2026, Nifty IT is down by more than 25% which is a huge setback for most of the people here in India. Though AI is not matured but still it is disrupting the business model of the traditional IT companies. So as of now the sector will continue to take beating until and unless there is a data to counter the AI narrative.
SO business model of AI is that it bills the clients based on the man hours and this if the AI tools can work the same amount of work in less time and money, the client expects the IT companies to lower the cost and thus the extra money will be gone. There will be pressure between the companies and eventually there will be competition.
Now in one way its bad, in one way AI actually provides a huge opportunity. The IT companies can work on multiple projects with the less people with the help of AI but that is again in future. So the AI adoption is the question here, if people are using the AI then they will surely succeed and get better at coding and eventually the projects will be delivered faster.
It's not that AI doesn't need people, more AI means more people but the salary might be less for many and the competition will be more. I feel now is the time to adapt the AI in full flow and become best in it.
