• Industry Speaker

Monday 1 July 2013

A quarter ends

The first quarter of the Financial Year 2013-14 has ended on a note of more uncertainty than when the year began. Global economies continue to be sluggish, the tapering off of QE 3  ( Quantitative Easing or the Bond Buying program in the US ) has caused occasional tremors in the US markets and flight of capital from emerging economies like India.

The resultant rapid depreciation of the rupee ( it even touched  60 briefly last week ) is bad for the Indian economy which is already plagued with sluggish economic growth. However it could be good in the short term for exporters and I am sure many results this quarter will show that impact.

However there are dark clouds over Indian IT too. The passage of the Immigration Bill in the Senate is causing some trepidation since this will at a minimum increase visa costs and in the extreme case cause a fundamental change in the employee mix and the business models of Indian companies in our main market.

There is still time - a more sensible version of the Bill is likely to pass the House of Representatives and the real action will start when the two bill versions have to be reconciled before the House and Senate clear them again and the President signs it into Law !

Interesting times lie ahead for all of us !

Ganesh

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