US financial crisis may be felt in India after Dec: Official

Bangalore, Sep 19(UNI) Indian IT companies may feel the heat of meltdown of US investment banker Lehman Brothers and crisis in the US financial market only after December, Karnataka IT Secretary Ashok Kumar Manoli said today.

Talking to reporters on the sidelines of a function after releasing CII-KPMG report here, he said about 35 per cent of revenue of major IT industries comes from Banking Service Finance Institutions (BSFI) worldover, with banks in the US having a major share.

''It is too early to say about the impact of the crisis on IT industries in Karnataka, the IT hub. However, the companies have said that they had the required 'internal' strength and can cope the pressure,'' he said.

CII Karnataka Chairman S Vishwanathan, who is also the Managing Director of John Fowler India, said global uncertain economic conditions was bound to affect the domestic IT companies.

''This industry needs all the encouragement and more so the small and medium enterprises. Extension of STPI incentives was one such measure that will go a long way in assisting IT/ITeS industry,'' he said.

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