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Obama Good for Global Economy: Business Leaders

Obama Good for Global Economy: Business Leaders

ndustry body Ficci said it "expects the brand new administration to set the US economy firmly on the way of revival and powerful growth.

Business leaders said that re-election of Barack Obama as the US President is going to be good for global economic recovery and expressed anticipation that issues on outsourcing to India is going to be resolved.

Obama Good for Global Economy

Obama Good for Global Economy

Industry body Ficci said it “expects the brand new administration to set the US economy firmly on the way of revival and powerful growth. This would be of great importance to the world economy and Indian exporters ought to be looking at a sustained increase in demand in the US”.

Nasscom, the industry body of software services companies which earn as much as 85 per cent of revenue from the US and European markets, said opposition to outsourcing in the US is really targetted at the manufacturing sector and never IT services.

“Every time there’s anti-outsourcing topic, we always take it as it is for our industry ” Nasscom President Som Mittal said, adding that “many from the jobs (in the manufacturing sector in the US) have moved (to China)”.

“We are means to fix many of the problems that US faces. There’s a realisation (in the US) that we are area of the solution,” he added.

Software major iGATE’s CEO Phaneesh Murthy, however, cautioned by stating that it is not the best news for IT outsourcing industry. “Not the very best news for India or even the IT outsourcing industry.

However, we need to know how much of the election rhetoric continues into 2013 which will determine the full implications to us,” Murthy said.

Biocon chief Kiran Majumdar Shaw expressed anticipation that “outsourcing rhetoric will die (down)” and said it will work for the Indian pharmaceutical sector.

There have been heated discussion how Indian business interest, especially IT outsourcing, is going to be impacted if Barack Obama’s is re-elected,segment.

Obama in the first term as the US President had ended years of tax incentives to people US companies which created jobs overseas in places like Bangalore. His comments like “Say no to Bangalore and yes to Buffalo,” had also set alarm bells ringing within the Indian IT outsourcing industry.

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