Upbeat Nasscom won't revise 10-12% growth projection

NEW DELHI: The Indian software exports industry body National Association of Software and Services Companies (Nasscom) on Wednesday said in spite of the current economic environment, it sees no need to revisit its growth forecast of 10-12% in software exports.

“There’s a lot of turbulence in global economy… We did mention some short term impact of Brexit on the industry, but there is no need to revisit it (growth projection),” said R Chandrashekhar, president Nasscom. He did, however, say that Nasscom was keeping a close watch on factors such as Britain’s exit from the EU and its ripple effect on demand for technology services.

Nasscom had said in June that UK’s decision to exit the European Union through a referendum will have an immediate impact in the short term due to the uncertainty in the environment.

With the decline in the value of the British pound, many existing contracts could lose propositions unless they are renegotiated. “The uncertainty surrounding protracted negotiations on the terms of exit and/or future engagement with EU could impact decision making for large projects,” said the statement.

He clarified that any impact of Brexit will become visible in second quarter results of IT companies and that while financial services business has been stressed, the industry has seen some upturn in Europe. He further said that India is concerned about the “discriminatory” US actions regarding the workers’ visa issues. India had filed a complaint against the United States with the World Trade Organisation (WTO) over non-immigrant temporary working visas in March.

“That matter is still being pursued by the government of India. We do believe US actions are discriminatory. In the issue of doubling of US visa fees, it is very clear that the only significant impact will be on India,” said Chandrashekhar.

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