Indian IT companies remain insulated from DOGE cuts

Elon Musk's Department of Government Efficiency (DOGE) plans to cut some federal contracts, primarily affecting US consulting firms. Indian IT companies are largely insulated, as they receive less than 2% of their revenue from US federal contracts. Analysts note that Indian IT firms, like Wipro and Cognizant, have minimal exposure to federal contracts. Most of their business comes from state and local governments, reducing the impact of DOGE's decisions. The US federal budget for 2025 proposes $75 billion for IT at civilian agencies. While there may be short-term uncertainty, some analysts believe DOGE's initiatives could create new opportunities for Indian IT firms in the long run.