The National Association of Software & Services Companies (Nasscom), the trade body of the Indian information technology (IT) industry, has marginally lowered the export growth estimates of the sector to 12-14% for Fiscal Year 2016 when compared to the current fiscal’s range of 13-15%. Citing the global macro-economic challenges in terms of currency volatility and recession in Europe, Nasscom has projected that the IT-BPO exports would touch around $110-112 billion for FY 2016.
At the inauguration of the annual Nasscom leadership forum, president R Chandrasekaran said the concerns are mainly with regard to economic fluctuations in different economies. "The way Europe, Russia, Brazil and others, on which a lot of hope had been pinned on, is slowing down. If there is slowing down of the economy and degrowth in some countries like Europe, then there is less money available in the IT sector," he said.
Even for FY 2015, the exports from Indian IT industry, hit by currency volatility, is expected to reach only the lower end of the guidance. The exports in FY15 is expected to touch $98.5 billion - a growth of 12.3% in reported currency terms while in constant currency it is 13.1%.
Chandrasekaran added, "We have come to lower end of the guidance, but nevertheless, it is a phenomenal growth given the base. We are confident of meeting the 2020 target of $300-billion industry size."
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NASSCOM is the trade body and chamber of commerce of the IT-BPO industries in India. NASSCOM is a global trade body with more than 1200 members, which include both Indian and multinational companies that have a presence in India. NASSCOM's member and associate member companies are broadly in the business of software development, software services, software products, consulting services, BPO services, e-commerce & web services, engineering services offshoring and animation and gaming. NASSCOM’s membership base constitutes over 95% of the industry revenues in India and employs over 2.24 million professionals.
Published: Tuesday, February 17, 2015
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