Anthropic’s new AI plug-ins sent shockwaves through India’s $283 billion IT sector, triggering a 6.3% drop in exporter stocks. The tools automate legal, sales, marketing, and data tasks, raising fears of reduced demand for offshore labor.

Indian firms like Infosys, TCS, and Wipro rely on large, cost-effective teams to deliver client services. Analysts warn that Claude Cowork could shrink billable hours and erode margins, especially for routine coding and testing work typically done by entry-level staff.

The selloff mirrored declines in U.S. and European software stocks. Infosys fell 7.3%, TCS dropped 5.8%, and HCLTech slid 5.1%. Investors are now weighing how quickly enterprises will adopt these AI tools and whether Indian IT can pivot to higher-value offerings amid growing automation threats.