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The Indian IT and ITeS sector is unlikely to be affected by a slowdown in the US market, IT industry body NASSCOM on Friday said. “Though the slowdown might affect the industry in the short-term, but in the long run the Indian IT and BPO sector will continue to maintain healthy growth rate,” NASSCOM President Som Mittal told reporters.

India’s outsourcing industry is grappling with an appreciating rupee and the sluggishness may remain for another four-to-six months, he said. However, the sector expects to meet or even exceed its software export target of 60 billion dollars and overall software and services revenue goal of $73-75 billion by 2010, he added.

“The financial turmoil in the US and elsewhere could drive businesses to farm out more work to cheaper Indian firms,” newly elected Vice-Chairman of NASSCOM Pramod Bhasin said.

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Inflation jumped to a 41-month high of 7.41 per cent on Friday, seen as a deadly blow to the government and fanning expectations of more monetary tightening that would hit economic growth. Inflation has climbed steeply in Asia’s third largest economy from a trough of 3.1 per cent in October and is far above the central bank’s tolerance level of five per cent.

Terming soaring inflation rate as a global phenomenon, the government on Friday said it has no “magic wand” to bring it down immediately though it is taking and will take all possible steps to contain price rise. “Inflation is at a very high level in all emerging markets such as China (8.7 per cent), Russia (11.9 per cent), Argentina (7.3 per cent) and Turkey (8.1 per cent),” Kapil Sibal said.

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