In the near-term future, recent development in the global economic environment is not likely to impact the Indian IT industry- Nasscom Statement

August 08, 2011: In recent developments, there has been a downgrade of Standard and Poor’s credit rating of the United States of America. This has led to a number of projections from analysts and economists indicating the possibility of a double dip recession in the US economy. According to Nasscom, it is important to highlight that this downgrade is driven by Federal deficit of the US and not due to the performance of the economy/industry. While the US economy has demonstrated sluggish growth, US businesses have performed well and have strong balance sheets. US businesses continue to invest for the future which is also driving the growth of Indian IT sector.



In a press statement Nasscom has assured that in the near-term future, recent development in the global economic environment is not likely to impact the Indian IT industry, The Indian IT industry while is closely intertwined with the global economy has a growing domestic market which is equipped to sustain growth, added Nasscom statement.

The US is and will continue to be one of the largest markets for IT and Nasscom sees the Indian IT industry partnering our US customers to build in greater efficiencies, which are a prerequisite in a low growth economy.

While the Nasscom projection of a 16-18 growth outlook for FY12 did factor in global uncertainties, the Indian IT sector will need to carefully monitor the development in the global environment.

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