AI Reshapes IT Billing: India's Export Momentum at Risk?

• AI-driven shifts in pricing models could impact India's IT export growth, raising concerns about current account and domestic consumption.
• Traditional time-and-material billing is transitioning to output-based pricing as AI adoption deepens, potentially slowing IT services exports.
• IT services are a significant part of India's exports, and stagnation could have ripple effects on the current account and consumption.
• Quantitative strategies show rotation away from secular growth themes towards industrial and value-oriented segments.
• Manufacturing exports, particularly auto ancillaries, capital goods, and electronics components, show sustained strength.