Duvvuri Subbarao, the newly appointed head of India’s central bank, said recently in an interview with the Financial Times that the prospect of a global recession threatened to hit hardest India’s software industry. “The most direct impact will be on the adverse effect on our exports, particularly our software exports,” said Mr. Subbarao.
“Our ability to raise money overseas for investment purposes for infrastructure could be constrained. . . If the recession is longer and deeper and if recovery is protracted, I’m concerned about protectionist pressures arising.” India’s largest IT outsourcing companies – Infosys, Tata Consultancy Services and Wipro – have had a transformational effect on Indian business over the past 10 years. But this month they warned of a deteriorating outlook for their businesses, which are heavily dependent on US contracts. Source: The Financial Times Limited
BIIA Newsletter October 2008 Issue