FM holds pre-Budget meeting with IT industry; top leaders participate in talks

New Delhi, Nov 19 (PTI) Finance Minister Nirmala Sitharaman on Wednesday held pre-budget consultations with top leaders of the IT sector, as the USD 280 billion industry confronts AI disruptions, global uncertainties, and increased H-1B visa costs in its largest market, the US.

While the industry executives remained tight-lipped after the meeting about Budget wishlist, it is learnt that the discussions ranged from building computing capacities in India, to scaling up skilling initiatives, given the disruptions and opportunities around AI.

The meeting was also attended by Union Minister of State for Finance, Pankaj Chaudhary, the secretaries of Department of Economic Affairs and IT Ministry, Chief Economic Adviser V Anantha Nageswaran and other senior officials from the Ministry of Finance.

"Union Minister for Finance & Corporate Affairs Smt. @nsitharaman chairs the eighth Pre-Budget Consultation with the experts and stakeholders from the Information Technology #IT sector in connection with the forthcoming Union Budget 2026-27, in New Delhi, today," the Ministry of Finance said in a post on X.

The meeting was attended by industry honchos including Preeti Lobana, Vice President and Country Manager at Google India; Rajesh Varrier President - Operations, Chairman and Managing Director of Cognizant India; Sindhu Gangadharan, Chairperson of industry body Nasscom, and Managing Director of SAP Labs India among others.

On Tuesday, the FM had held similar round of consultations with founders and senior executives of startups.

In a post on LinkedIn, Aman Gupta, Co Founder of BoAt said he had shared thoughts on ESOP taxation reform and how simplifying it can unlock wealth creation at every level for team members, and future builders.

"For the first time, startups were invited at this platform and it truly felt like a big moment for the ecosystem. Grateful to represent our founder community," Gupta wrote.

Noting that India is already showing the world what is possible when policy and innovation come together, Gupta said that the next decade will belong to startups.

"As a co-founder of boAt Lifestyle, I have personally seen how the right support and the right intent can change the trajectory of a young company," he said.

Last week, the finance minister met economists, leading representatives from the agriculture sector and MSME sector players as part of the first, second, and third rounds of discussions, respectively. On Tuesday, three pre-Budget consultations including with representatives of capital markets and startups were held.

Sitharaman, who would present her ninth consecutive Budget likely on February 1, will present the annual account in the backdrop of geopolitical uncertainties and the steep US tariff of 50 per cent imposed on shipments from India.

The pre-budget meeting with IT bigwigs comes at a time when the USD 280 billion industry is confronting challenges, including AI-led disruptions, geopolitical tensions, uncertainties around trade and tariffs, and tighter H-1B visa regulations impacting the mobility of tech professionals.

It is pertinent to mention that the H-1B fee hike to USD 100,000 for new visa petitions, effective September 2025, significantly increases costs for Indian IT companies, and experts say it may limit opportunities for many skilled tech workers and prompt shifts in global talent strategies.

Adding to the concerns is the legislative threat of the proposed Halting International Relocation of Employment (HIRE) Act, introduced by Senator Bernie Moreno, which if passed, will curb outsourcing and promote domestic employment by imposing a 25 per cent levy on payments made by American companies to foreign workers for services benefiting US consumers. PTI MBI DP MBI MR