New Delhi: The Indian IT industry is likely to be impacted significantly by the global financial crisis due to the loss of overseas markets as well as protectionist trends, according to PM’s special envoy Shyam Saran.
Saran further said that the sector has been focused on the export market so far. It has not looked at the domestic market as a significant business opportunity.
“Now could be the time to do this. More competitive conditions in both domestic as well as external markets require Indian industry to be more efficient and productive,” he told at a seminar on ‘GeoPolitical Consequences of Current Financial and Economic Crisis: Implications for India´.
This is where the country’s IT industry can play a significant role, but this will require the dynamic sectors of economy, the services and the manufacturing sector, to come together to deliver a major punch, once the global economy settles down into a new and altered landscape, he said.
He suggested that there should be a willingness in business and industry to think through and come up with an ambitious and potentially winning strategy.
They should seek government support for delivering on such a strategy rather than looking only for short-term relief, added Saran.
Sensing opportunity in the global meltdown, Saran said “there is little doubt that for at least the next 3-5 years, if not more, we will find a buyers market in a wide range of sectors due to the global slowdown.”
There is already significant excess capacity in capital goods and infrastructure sectors, he said, adding, not only are more economical prices on offer but probably better terms and conditions for technology transfer as well.
Recommending that government should focus on infrastructure development, he said, there is a window of opportunity and business to take advantage of these favourable conditions, to accelerate the upgradation of transport networks, build more state of the art airports and seaports, and most of all, solve the power problem once for all.
“The civil nuclear agreement is a timely instrument in our hands today,” he said, adding, as investment in the nuclear renaissance in the developed world slows down, India could some source many more high capacity nuclear reactors on the most competitive terms, if it wishes to.
The country can leverage its financial credibility in the global market, to raise the funds required, he said.
“We have to package and project ourselves as part of the solution to the global economic recession and not as its tragic victim... but we will need to communicate these more effectively to the rest of the world than we have so far,” he said.