Indian IT firms minimally affected by US federal cuts

The US Department of Government Efficiency, led by Elon Musk, is cutting federal contracts and jobs. This move primarily affects US consulting firms, with minimal impact on Indian IT companies, which have limited exposure to federal contracts. Indian IT firms account for less than 2% of US federal spending, with only about $6 billion linked to federal contracts. Their work mainly involves local and state governments, reducing the overall impact of these changes. Companies like Cognizant and Wipro are expected to remain largely unaffected due to their minimal involvement in federal contracts. Analysts suggest that larger US consultancies will face more significant challenges from these federal contract terminations.