India’s IT sector is worried about the possible imposition of tariffs on software exports to the US by the Donald Trump administration. The IT sector is already experiencing challenges due to worldwide economic uncertainties and the increasing adoption of AI-based automation, according to industry specialists.The US government’s potential consideration of extending tariffs to software exports has created significant concern within India’s information technology industry, as this could severely impact their operations in their main market.

Trump tariff fears: Why is Indian IT sector worried?

The implementation of tariffs on services exports by the US administration could result in dual taxation, as Indian software companies already contribute substantial tax payments in the United States, according to an ET report.Additional restrictions on visa regulations might lead to increased operational costs due to necessary local recruitment in the US or neighbouring regions.

Tech in trouble?

The Indian technology services outsourcing sector, valued at $283 billion and including companies such as Tata Consultancy Services, Infosys, HCLTech and Wipro, derives over 60% of its earnings from the United States, whilst maintaining its primary workforce in India.However, the US administration has not yet formally announced or indicated any such intentions. Concerns arose after Peter Navarro, the US President’s senior advisor for trade, shared a social media post on X suggesting the application of tariffs on all outsourcing and foreign remote workers.A US conservative commentator Jack Posobiec posted: “Countries must pay for the privilege of providing services remotely to the US the same way as goods. Apply across industries, levelled as necessary per country.”Such implementation would affect all technology service recipients who utilise services from India and similar nations.

Will Trump impose tariffs on IT?

Phil Fersht, CEO and chief analyst at HFS group, suggests that discussions about tariffs on India’s outsourcing sector represent more political messaging than actual policy intentions. Nevertheless, any outsourcing penalties would generate immediate uncertainty, increase operational costs and affect profit margins during an already challenging demand period, the ET report said.“Imposing duties on digital labour flows is far more complex than taxing goods crossing borders. The US depends heavily on India’s IT and engineering talent, whether onsite through H-1B visas or offshore through remote delivery, to keep its own technology economy competitive,” Fersht said.“In addition, several tech billionaire leaders exert significant influence over the Trump administration, and many of them are strongly pro-India because their global businesses depend heavily on Indian engineering talent, delivery capability and market access.”Yugal Joshi, partner at US-based technology consultancy and analyst firm Everest Group, was quoted as saying: “These companies pay significant taxes in the US and therefore, the tariff will be double taxation… It will further harm growth of India-based service providers and even GCCs, if they are tariffed too.”

New Delhi: Joining other automakers in reducing prices, Mahindra & Mahindra Ltd (M&M) on Saturday announced to fully pass on the GST 2.0 benefits to customers across its ICE SUV portfolio — up to Rs 1.56 lakh — with an immediate effect.

According to the company, models like Thar, Scorpio, Bolero, XUV700, and Scorpio-N will be available with substantial savings ranging from Rs 1.01 lakh to Rs 1.56 lakh. Bolero and Bolero Neo are cheaper by up to Rs 1.27 lakh, while the XUV3XO Petrol gets a cut of Rs 1.40 lakh, and the XUV3XO Diesel leads with a reduction of Rs 1.56 lakh.

The Scorpio-N offers savings of up to Rs 1.45 lakh, the Thar Roxx Rs 1.33 lakh, and the flagship XUV700 RS 1.43 lakh. Toyota Kirloskar Motor (TKM) also announced it will fully pass on the benefits of the recent GST rate reduction to its customers across its range of vehicles — ranging from Rs 48,700 (Rumion) up to Rs 3.49 lakh (Fortuner).

“We sincerely thank the government of India, for this historic reform. It has not only enhanced affordability for customers but also strengthened overall confidence in the auto sector. Ahead of the festive season we expect this step will provide strong momentum and further accelerate demand,” said Varinder Wadhwa, Vice President, Sales-Service-Used Car Business and Profit Enhancement.

While Toyota Glanza will see price cuts up to Rs 85,300, Taisor will see price reduction up to Rs 1,11,100; Hyryder up to Rs 65,400; and Fortuner up to Rs 3,49,000.

Renault India also announced a significant price reduction for its cars on Saturday. Prices of its three models — Kwid, Triber and Kiger — have been slashed by up to Rs 96,395. Under the new GST 2.0 framework, all internal combustion engine (ICE) cars are now taxed at either 18 per cent or 40 per cent.

Smaller cars such as hatchbacks, compact sedans, and compact SUVs fall under the 18 per cent slab, while mid-size, larger, and luxury models attract 40 per cent. Previously, ICE vehicles were subject to 28 per cent GST plus an additional compensation cess ranging between 1 per cent and 22 per cent depending on size and engine capacity.

For electric vehicles, the GST rate remains unchanged at 5 per cent, while hydrogen fuel cell vehicles (FCEVs) have seen a reduction from 12 per cent to 5 per cent.

For most Indians, the fear of outliving retirement savings looms larger than ever as life expectancy rises and medical costs climb. Picture this: your morning coffee in retirement, bills paid, lifestyle intact — and all of it supported by a steady Rs 1 lakh monthly income. Financial planners say this is possible, but the secret lies in building the right retirement corpus and matching it with your risk appetite.Depending on the investment route you choose, the required savings range from Rs 1 crore to Rs 2 crore. Safe options like annuities and fixed deposits can work with Rs 2 crore, while those willing to take higher risks may target the same income with just Rs 1 crore in diversified equity funds.How much do you need to earn Rs 1 lakh a month?To generate Rs 12 lakh annually, the required corpus depends on the rate of return. With Rs 2 crore, investors can choose safer instruments like annuities, debt funds or fixed deposits, which typically offer around 6% returns, according to an ET report. For those with Rs 1.5 crore, instruments offering 8% returns, such as the Senior Citizens’ Savings Scheme, balanced hybrid funds or equity savings funds, may be enough. According to Value Research data (September 2, 2025) quoted in the ET analysis, balanced hybrid and equity savings funds have delivered 8.80% and 8.10% CAGR respectively over the last decade.Risk-tolerant investors with Rs 1.2 crore can aim for products that generate about 10% returns, such as aggressive hybrid, large-cap or large-and-midcap funds, which have delivered 11.98%, 12.75% and 14.69% CAGR respectively in the last 10 years. At the highest-risk level, those with Rs 1 crore can still target Rs 12 lakh annual income by investing in flexicap or multicap funds, which have historically returned over 12% CAGR. Flexicap funds, for instance, gave 13.64% CAGR in the past decade.

Table source: ETWithdrawal-based strategies to keep corpus intactSome planners recommend strategies that preserve capital while providing inflation-adjusted returns. Rohan Goyal of MIRA Money suggests a 4–5% withdrawal rate, requiring Rs 2.4–3 crore to sustainably generate Rs 12 lakh annually. “A 4–5% withdrawal rate is low enough that portfolio growth should outpace withdrawals, making the corpus last decades,” he was quoted as saying.Arun Kumar of FundsIndia advises an 85:15 split between aggressive hybrid and arbitrage funds, with systematic withdrawal plans (SWPs) starting after one year. Withdrawals should pause if the market corrects sharply and shift temporarily to arbitrage funds, resuming later.Elever’s Karan Aggarwal suggests a glide-path approach: begin with a 50:50 split between debt and arbitrage funds, then shift 10% annually towards equity until the sixth year, when equity allocation reaches 50%.Tax rules to rememberTax treatment varies across instruments. Equity funds attract 15–20% short-term capital gains tax and 10–12.5% long-term capital gains tax, while debt funds face 20% with indexation or 12.5% without. Hybrid funds are taxed according to their asset mix, said CA Suresh Surana.Don’t forget inflationA fixed withdrawal of Rs 1 lakh today may lose significant value over 10 years. SWPs that allow part of the corpus to remain invested and continue compounding can help balance current income with future security.Experts say there is no universal formula for securing Rs 1 lakh a month. “Start early, diversify across equity, debt and hybrid options, and review periodically,” one planner said. “What matters most is matching investments with risk appetite and keeping income inflation-adjusted.”(Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.)