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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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Some positives at last

The Indian investor has reason to cheer-the economy is expected to grow by 8.5 percent in 2008-09 and recent fiscal steps will help check price rise, ASSOCHAM said on Friday.

Inflation raced to its highest in more than three years to 7.0 percent in the 12 months to March 22, pulling down the stock market and sending bond yields higher.

“Government has taken sufficient corrective measures to contain inflation….the measures would yield results and bring down prices of essential commodities to manageable limits in next few days,” the Associated Chambers of Commerce and Industry (ASSOCHAM) said in a statement.

ASSOCHAM said the growth in gross domestic product for the current fiscal would exceed 8.5 per cent, compared with an estimated 8.7 percent in the previous fiscal year.

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