Bangalore, Nov 10: While the manufacturing sector, mainly the export driven, would be hit by the global economic slowdown, the Indian IT industry would not only tide over the problem but benefit from it, Union Minister of State for Commerce Jairam Ramesh said on Monday, Nov 10. Talking to newspersons on the sidelines of a function here, he said the manufacturing sector, including steel and automobile industry would face problems due to the current economic downturn. ''But I think the IT industry would ride over the tide and emerge stronger from this global economic crisis as it provides new opportunities for India's IT companies,'' he added.
He said even if the US President elect Barack Obama introduced new taxes to discourage outsourcing, the cost advantages India enjoyed in the IT sector would still be substantial. ''This crisis will present a great opportunity for the IT industry,'' he opined. On India also suffering slowdown in the economy, Mr Ramesh said Prime Minister Manmohan Singh had said the GDP growth of India in the current fiscal year would be between 7 to 7.5 per cent.
7.5 per cent GDP growth would be a great achievement for India in view of the collapsing world economy, he added. ''The Chinese Government has just announced a package of half a trillion Dollars to shore up the economy. Almost all countries in the world are facing the heat of this meltdown because demand is contracting,'' he said.