Indian IT sector, despite AI fears, seen thriving long-term with AI services poised for $300–400B growth by 2030.

Despite fears that Generative AI threatens the Indian IT services industry, Nuvama reports the sector is unlikely to face an existential crisis and will emerge stronger. The brokerage highlights persistent demand for system integrators who customize software for enterprises, drawing parallels to past disruptions like the 2008 crisis and the pandemic, all of which the industry overcame. While recent stock declines reflect short-term volatility, Nuvama sees attractive valuations and expects long-term growth, with AI services potentially worth $300–400 billion by 2030. The firm upgraded top Indian IT firms to "Buy," citing undervaluation and strong future prospects.