IT sector bullish on Modi Government
The Indian IT sector today welcomed the clear mandate from people to BJP-led NDA for the formation of the 16th Lok Sabha and expected the new government to adopt technology faster to bring huge business to this sector.
Speaking to reporters here, top Indian IT company Tata Consultancy Services CEO and Managing Director T Chandrasekaran said he would expect TCS India business to pick up with the kind of mandate that country gave (to the BJP/NDA), yesterday.
"I expect the new government will adopt technology faster and also the corporate sector will see a revival across the board. The domestic (IT) market will pick up. However, we need to wait till September before we start to factor anything," he said.
The TCS Chief said rupee will witness some appreciation but do not know how far it strengthens against foreign currency, especially the US dollar.
"Better we wait at least for a month before we start to comment where the rupee will be and what type of margin pressures or head wind it will have on the Indian IT sector.
"A volatile rupee is not good and also a highly depreciating rupee is also not good (for the economy). We need stability in rupee value and TCS also believes in it," he said.
As for as the adverse impact, a strengthening rupee will have on export-focused Indian IT sector remains to be seen, he said.
Despite the slow growth during the last two years, the Indian IT sector had made sufficient progress in revenues and profit due to falling rupee and its income coming predominantly in foreign currencies.
He said the election results were important as the country was 'soft' (in development) till the elections. 'The mandate was decisive and strong. We are positive that things will pick up in India much sooner with this result,' he felt.
Mr Chandrasekaran said he expect that the new government will adopt technology very significantly.
'Our nation will adopt digital technologies much more than before so, I expect lot of growth.
But these are early days. We should wait for sometime till the new government is formed,' he said.
He said from private sector point of view, lot of activities will happen and he expect India will begin to grow faster in the later part of this financial year.
(Posted on 17-05-2014)