The Hindu Business Line : US slowdown may hit services exports

New Delhi, Nov. 7 The country’s services sector exports, including BPO, software and financial services exports, are likely to take a hit during the fourth quarter of 2008 on account of the ongoing global meltdown, a report by global research firm Deloitte has said.

“The ongoing slowdown in the US economy will likely to affect the future growth in India’s exports. Experts predict that US businesses would likely either reduce outsourcing or withhold expansion plans,” the report ‘Deloitte Global Economic Outlook’ for the fourth quarter of this year said.

As a result, BPOs, financial services and other software exports contributing to about 2 per cent of India’s GDP are likely to be affected, the report added.

The report said the country’s economic growth may fall by as much as 2 per cent over the next few years in the backdrop of the current financial crisis. “India will face slower growth prospects with analysts predicting a fall of as much as two percentage points over the next couple of years,” it said.

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