Indian IT industry unlikely to be affected

Nasscom said, “This (the downgrading) has led to a number of projections from analysts and economists indicating the possibility of a double dip recession in the US economy. (But) The economic crisis in the US, unfolding over the last few days, does not have any major bearing on the country’s private sector.

Although global economic environment is a cause for concern, it is not likely to impact the Indian IT industry, in the near-term future.”  The industry has a burgeoning domestic market which is equipped to sustain growth. “Also, the US is, and will continue to be one of the largest markets and in case of economic slump, we see the Indian IT industry strengthening its partnership with the US customers to build-in greater business efficiencies.”

“We are counselling the Indian IT sector to maintain a cautious outlook going forward”, it said.