“To attract FDI and FII, India has to hold on to its charm and sustain a steady growth”
Sujata Dev, co-chairperson, entertainment committee, Assocham and joint managing director, Third Generation Mobile
“The big bang approach of buying would dip, however there will be incremental IT spending with justifications on business benefits”
Subramanya C CTO, HGS
and other emerging markets. The EU, as a whole, is our second largest trading partner after the GCC. We were able to weather the 2008-09 recession better than most countries because of better regulations in our financial system and the growth momentum in our economy. In the present environment, while the first factor is still relevant, economic growth is slowing down because of rising input costs, a high interest rate regime, and the almost free fall of the rupee,” says Rajeev Gupta, president, Fujitsu Consulting India.
Infusing Support
There seems to be a mixed reaction among stalwarts of the industry on the movement of the Indian sensex. While some expect it to witness a temporary setback with a wait for tangible results expected to be long as the second half of 2012. “The stock market sentiments would continue to give negative vibes because of uncertainties around the world market and the ongoing crisis around corruption and political inDATAQUEST | A CyberMedia Publication
stability in India. I presume that the market sentiments would become stable in the near future as even the Indian government is committed to take steps to stabilize the growth and market sentiments. Considering the election year, I am personally of the view that the market sentiments and political instability would move in a positive direction towards the later half of 2012,” adds Rajeev Kachhal, CFO, Fiserv India. “Eurozone’s sovereign debt crisis looks like a long-term issue and will have its impact on the global economy. India Inc, as a whole, has 18% export exposure to Europe and 10% to the US. So, the Indian companies have to re-strategize their global marketing and also look for Asian markets to sustain their export volume and earning. However we must keep in mind that economic progress can only happen when there is long-term tranquility and stability. To attract FDI and FII, India has to hold on to its charm and sustain a steady growth,” feels Sujata Dev, co-chairperson, envisit www.dqindia.com
tertainment committee, Assocham and joint managing director, Third Generation Mobile. “The current state of flux is likely to remain few years. But it is great opportunity for the emerging economies like India, especially for mid-segment companies,” feels Rajagopalan Babu, founder and CEO, Enteg. Meanwhile, on the other side of the coin is the school of thought, which is of the view that with the recent upgradation of India’s rating to investment grade by Moody’s, would help in attracting FIIs. “Euro demands immediate attention. The present crisis is not as much due to fundamental problems as it is due to lack of confidence in the ability of the governments to sort out the problems. It is difficult to predict when the crisis can end. But we should see some improvement from March,” feels Subramanya C, CTO, HGS. In a falling market, things may look gloomy for traders, but someone’s loss is somebody’s profit. In a fast-growing economy like India’s, everyone wants to be a part of the story. Thus, FIIs will target India as the Indian economy is much more growth oriented. However right government policies and political stability will also be critical in determining the risk rating and FDI flow. If Indian IT industry can sustain innovation then there should be no dearth of funds flowing, reciprocated with growth. On an inspirational note, Kamesh Ramamoorthy, COO, Ramco Systems reminds, “The current economic scenario is quite dull, but we expect this scenario to be a short-term effect and hopeful that the market will stabilize soon. It may be, world over, there is a preference for deposits as opposed to equity—a clear preference of investors who favor steady returns. Equity markets will continue as always to reward innovation. Business efficiencies February 29, 2012 | 33