New Delhi, 30 DEC

The Indian IT industry steps into 2025 with hope and optimism of improved tech spending and stronger deal pipeline as businesses across-the-board take bold AI bets, but all eyes are on global macroeconomic cues as well as the US' stance on trade and high-skilled immigration as President-elect Donald Trump returns to White House next month.

With Q2 report card of most IT heavyweights fuelling hopes of an improved client demand over the coming quarters - industry pundits predict a notable rebound in growth and profitability metrics materialising by late 2025 or the second half of FY26, if all goes well.

Experts also expect tech M&A counters to buzz right through 2025, with big data, cloud and Gen AI (Generative AI) acting as major draws for companies with takeover appetites. Meanwhile, the IPO market - heady from 2024 highs - seems all primed up for yet another blockbuster year as a slew of tech startups are readying for a market debut to capitalise on euphoria.

After creating a stir in 2024, Generative AI is now at a "transformative inflection point" and poised to redefine industries and fuel global innovation. While tech sector is broadening its services to include GenAI-powered analytics, intelligent automation, and personalised customer experiences, the non-tech sectors are expected to face significant disruption, with GenAI transforming marketing, operations, R&D and other operations.

Following in the footsteps of Swiggy and FirstCry, startups such as Zepto, Bluestone, Ecom Express, PhysicsWallah, InCred Finance, Ola (mobility), PayU, Ather, boAt, Pine Labs, are reportedly eyeing a public issue.

Indian startups took on the might of tech world goliaths like Google, who also came under increased scrutiny from competition watchdog. –PTI