Impact on IT Industry CRISIL Report

Due to increase in ease of doing business, FDI investments are increasing and since IT
industry is the highest FDI investment sector, it is expected to grow further in 2017
IMF has brought down the world GDP growth forecast from 3.6% to 3.4%, likewise
World Bank reduced its forecast from 3.3% to 2.9%. This shows sluggish global
growth and since Indian IT/ITeS is mainly dependent on growth in foreign markets.
So, a weak global growth will act as an impediment in the growth of the IT sector.
Lower inflation will decrease the pressure on IT companies to give huge hikes to its
employees resulting in more money to spend
With the introduction of 7th pay commission there will be a pressure on IT Services
company to increase the salary of the private sector employees.
USA, UK and EU constitutes 90% of the Indian IT exports. Growth forecast in these
countries is positive as per the reports, hence growth prospects of Indian IT Sector is
good.
Better monsoon will revive the whole economy which in turn will help in the growth
of the IT industry
Better monsoon will boost the growth of manufacturing sector which will need the
help of IT industry for automation and better functioning.