India's ICT outsourcing sector is a growth market for the country and the local High Commission would like to see more joint ventures between SA and India.
High commissioner to SA, Virendra Gupta, says much of the $200 billion IT sector in India is earned from exports to countries such as SA, as well as developed nations. However, due to the global economic crisis that caused several companies to fail in 2008, spending in the sector was reduced, he says.
Gupta adds that ICT is a thrust area for the nation and he is confident it can grow its market share. There are about 3 000 Indian ICT professionals in SA working on various contracts, as well as several large companies, he adds.
There are areas that have the potential for considerable growth in the coming years, and Gupta would like to see more joint ventures between Indian and Southern African countries. SA remains an important trading partner for the eastern country, and trade between the two has doubled in the last five years, to reach $14 billion.
According to trade organisation Nasscom, India increased its market share from 51% in 2008 to 58% in the global sourcing industry. The industry continues to be a net employment generator and is expected to add 230 000 jobs in 2012.
Global storm
However, the slowdown in the US and European economies has affected India, although developing countries weathered the storm better than developed countries, Gupta says. Last year, India grew at 6.5% and is expected to slow to 6% this year.
India started reforming the economy and opening it up to external trade towards the end of the 1980s, says Gupta. He adds that, since then, the economy has grown at good rates and hit 9.6% in the 2006/7 financial year.
Inflation has also picked up and climbed to 9.6% in 2010/11, although the rate is now declining and was 7.4% last month, notes Gupta. He says the central bank is on the verge of cutting interest rates due to the decline.
India's priorities are economic growth, skills development, education and poverty eradication. The country is home to 1.2 billion people and produced 250 million tons of food last year.
However, says Gupta, millions of people still live below the poverty line and there are many who do not have access to water or electricity. He says macro numbers mean nothing when there are issues such as unemployment.
India's economic growth is expected to bounce back to around 7% or 8% in the short-term, adds Gupta.
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