India's IT Sector Weighs Real AI Disruption Against Overdone Fear

India's information-technology services companies are caught between a genuine threat and an exaggerated one. Speaking to the Economic Times, market strategist Seshadri Sen argued that fear of artificial intelligence displacing the sector has been overdone relative to attractive long-term valuations, while cautioning that near-term pressure on earnings is likely to persist.

Sen advised tactical caution on the sector and said he favored domestic consumption over export-facing technology, adding that inflation risks in India appear contained but that rural demand remains a variable worth monitoring. The view captures the dilemma facing one of India's largest export industries as automation reshapes the outsourcing work that built it.

The debate matters beyond India because the country's technology services firms are central to global corporate computing. How quickly artificial intelligence erodes or augments that work is an open question for clients and investors across the United States and Europe as much as in Mumbai.