The global slowdown has taken a toll on India’s services exports, which have shown a negative growth rate in the first and second quarters of this year.
According to a survey by Federation of Indian Chambers of Commerce and Industry (Ficci), export of services declined 7 per cent and 3 per cent in the January-March and April-June quarters, respectively, in contrast to a growth of around 14 and 22 per cent in the corresponding period of 2008. Ficci expects the decline to reverse by the fourth quarter.
“All major segments of services exports, except insurance and financial services, witnessed contraction since January. This has resulted in a subdued growth of 12.4 per cent in India’s total export of services in 2008-09, compared with over 22 per cent increase in 2007-08,” said Ficci president Harsh Pati Singhania in a release. When contacted, Raman Roy, chairman and managing director of Quattro BPO Solutions, however, did not agree with the results of the survey related to information technology (IT). “All the big companies have been registering growth,” he said.
But Ganesh Natarajan, chief executive officer of Zensar Technologies, said, “Overall, the decline has been there for all exports. IT exports too have been affected but we expect a much better performance in the second half.”
Source : mydigitalfc.com