The current global turmoil has led to the fall of overall world GDP and it is estimated that the world GDP will fall even further in 2009 as forcasted by the World Bank. Our Bangalore, the IT hub, under such situation has taken a good precautionary step, by shaking hands with the world's Second largest Economy, Japan, with a GDP of $4.377 trillion for outsourcing ICT(Information and Communication Technology) from India to Japan.
Thus, this avails an opportunity for the Indian IT hub to expand its wings globally. Though the US and EU(European union) account for 80-90% of Revenue source for India, but still Japan has started becoming a productive source for our nation. Not only this, many of the well-established Indian IT giants such as Infosys, Wipro, etc. have already signed and started major projects in Japan. This move of Japan is a step towards cost-cutting and expense management as the global turmoil has hit hard this giant economy.
This is a prosperous prospect for our nation, as Obama's administration may enforce a 50% tax regime over the American outsourcing companies till coming November. Thus, Japan may prove to be a good option for our growth, side by side continuing our IT exports to US and EU, the two largest IT markets in the world. FICCI(Federation of Indian Chamber of Commerce and Industry) has pointed out the fact that Japan has started to fabric ties with India on a large scale in terms of IT.
Japan is well aware about the Indian IT sector's capabilities, its abilities to accomplish projects, maintain secrecy and honest transparency of working. Thus, our Indian IT hub is all set to welcome a new guest in our this, fiercely growing ICT sector.
Do share your views.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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