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flag Middle East conflict threatens India's IT growth due to higher oil prices and reduced Gulf tech spending.

flag Rising Middle East tensions are threatening India's IT sector, with projected growth slowing to 2–3% in 2027 due to higher oil prices and reduced tech spending in the Gulf, a key market. flag The conflict risks disrupting nearshore operations and AI-driven transformation, while India’s heavy reliance on Middle Eastern oil imports could dampen global economic growth and enterprise tech budgets. flag Although some diversification to Egypt and South Africa may ease risks, the sector faces mounting pressure from both geopolitical instability and AI-driven workforce changes.

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