India's $280 billion IT industry, including major firms Infosys, TCS, and Wipro, reported muted growth in their fourth-quarter earnings, reflecting ongoing challenges from global uncertainties such as US tariff wars and weakening discretionary spending in sectors like retail and automotive. Despite subdued financial results and cautious outlooks, the sector is witnessing a strategic shift driven by increased adoption of generative artificial intelligence (GenAI), with companies like TCS reallocating AI-driven cost savings from IT projects to business-focused AI programs to enhance market share. Industry leaders anticipate a rebound in IT hiring in fiscal year 2025, signaling potential recovery. Meanwhile, broader Indian business activity showed improvement in April, with HSBC India PMI manufacturing, services, and composite indices reaching eight-month highs, supported by a surge in export orders amid a pause in US tariffs. This mixed environment places the Indian IT sector at a crossroads, balancing near-term pressures against longer-term opportunities presented by AI and renewed demand.