meltdown has hit IT sector hiring in India: Nilekani
Bangalore, Feb 16 (IANS) Infosys Technologies vice-chairman
Nandan M. Nilekani Monday admitted that the global economic
meltdown has affected hiring in India's IT industry.
"The IT sector is not seeing job buoyancy now compared
to earlier years due to global economic slowdown," Nilekani
said at a function in the Institute for Social and Economic
Change (ISEC) in this tech hub.
Delivering a lecture on 'India at the Crossroads: the Choices
Before us', Nilekani said the IT industry was facing unprecedented
crisis and it was difficult to predict how long the economic
downturn would continue.
"The recruitment was well-placed earlier when the growth
rate was 30 percent in the IT sector. The crisis in the financial
sector has automatically affected Indian IT firms," Nilekani
Though software exports grew to a whopping $40 billion in
FY 2008 from a mere $50 million in 1991, with a compounded
growth rate of 30 percent over the last three-four years,
the economic slowdown has reduced the growth to 20 percent.
"The IT industry grew rapidly on the back of high global
economy growth. But in the long-run the sector will do well.
The need for technology the world over has not reduced and
India too is a large consumer of the technology," Nilekani
Referring to the various challenges the country was facing,
the IT bellwether's top executive said there was a need to
create 270 million jobs by 2035 to reap benefits of the demographic
"India has a large number of young people and jobs need
to be created by integrating our economy with the global economy.
The potential of the youth needs to be harnessed to accelerate
the economic growth rate," he asserted.
Recalling the growth witnessed by developed economies such
as Britain, Japan and the US before and after the World War
II, Nilekani said India was young when the rest of the world
Seeking devolution of more powers and funds to urban and rural
local bodies, Nilekani lamented that the local bodies had
been denied powers due to vested interests of some political
leaders at the state and central levels.
"The poor have not benefitted from food, power, farm,
water and healthcare subsidies. Measures have to be taken
to distribute entitlements directly to the targetted beneficiaries
since the subsidies are regressive and not progressive,"
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