When is the IT industry expected to bounce back?
In the first two quarters of 2008-09, people said the IT sector was resilient. But only between October and January do contracts come up for renewal and most companies have signed for lower rates. These contracts will not be up for renegotiation until next January, and I don’t see a possibility of the sector turning around before that.
Has the government done enough?
The waiving of existing loans or offering subsidies alone does not trigger consumption. I hope the government takes out this money and spends it on infrastructure projects to trigger a multiplier effect.
Does the state of the Indian economy worry you?
There is nothing to be alarmed about. If corporates have stopped investing, that’s because of the meltdown in global credit markets. Once recovery signs begin, they will be the first to jump on to the bandwagon.
