NASSCOM Lowers Indian IT Export Growth Forecast For 2016-17

Amid global macroeconomic turmoils like the Brexit, software association NASSCOM on Wednesday (16 November) reduced the Information Technology (IT) export growth target for 2016-17 to 8-10 per cent, reported Mint.

At the start of 2016, NASSCOM projected 10-12 per cent growth rate for Indian software services, including business process management. It anticipates the incremental revenue addition to be between $8-10 billion in 2016-17, against the $10 billion in 2015-16.

Industry experts expect the growth rate to be lowered by 1-2 percentage points after muted earnings from Indian IT companies. The export revenue growth stood at 12.3 per cent in 2015-16.

In October, Wipro registered a fall in the second quarter net profit, warning that revenues in the October-December quarter could be impacted by a “mixed demand environment.” TCS and Infosys posted muted growth numbers for the second quarter as well. Infosys, in fact, slashed its annual revenue guidance for the second time this year, to 8-9 per cent.