‘Babus never understood the business...’: X user sparks debate on what really built Indian IT

India’s IT boom may owe more to bureaucratic ignorance than visionary policy, at least, that’s the case one X user is making. 

“The only reason the IT industry took off in India,” wrote @kaipullai, “is that our Babus never understood the business and its potential and by the time they realized its value, it had become too big to fail.” 

What began as a tongue-in-cheek jab at India’s bureaucracy has reignited debate about whether government inaction—or rare moments of support—have done more to shape India’s tech success.

Monica Jasuja, a fintech leader, weighed in: “The Indian tech story is really not for beginners—on one hand we have babus who counter progress with archaic thinking, on the other hand we have UPI which proves the counterpoint. When our 'Babus' actually embrace innovation, India creates world-class digital infrastructure.”

She added, “Does India need both chapters—one where bureaucracy’s distance makes innovation flourish and one where the reverse enables a world class innovation, made in 🇮🇳!”

Ketharaman Swaminathan echoed the sentiment, stating, “As an OG of the industry said, the biggest help given by govt to ensure the success of the Indian IT Industry is to stay away from it.”

The exchange comes just as the Indian IT industry stares down renewed pressure, this time from outside its borders. 

Donald Trump’s sweeping new tariffs, while not directly targeting Indian IT, threaten to squeeze the sector’s largest clients in manufacturing, retail, and logistics. Analysts warn this could delay projects, extend deal cycles, and drag down revenue growth.

With over half of India’s $190 billion software exports headed to the U.S., the impact could be substantial. Brokerage firms like Bernstein and ICICI Securities have already downgraded their outlooks for Indian IT firms, especially those heavily reliant on discretionary tech spending.

The timing couldn’t be worse. Many in the sector had been hoping a second Trump term would revive U.S. client confidence. Instead, the tariffs have introduced fresh uncertainty just ahead of the Q1 earnings season, where analysts have already trimmed expectations.