Downturn In IT Sector Not Possible: Minister Ravi Shankar Prasad

Downturn In IT Sector Not Possible: Minister Ravi Shankar PrasadRubbishing the recent reports of layoffs in the Indian IT industry, Union Minister Ravi Shankar Prasad has dismissed these reports as far from the truth. The law and IT Minister has termed these reports as “completely wrong” and has rebuffed to dial the panic button.

In an interview with ET Now, the Minister termed the current situation as exaggeration and assured that a fair amount of people will be employed in the IT sector in the current fiscal. He also added that major IT firms including Infosys and TCS are going to witness a sharp increase in the recruitments this fiscal year.

Mr. Prasad said in a press conference,

” Many things have been told about its downfall which is out and out wrong. The export of Indian IT companies outside is close to Rs 7.4 lakh crore. And the STPI (Software Technology Parks of India) helping entrepreneurs to export (services) worth about Rs 3.5 lakh crore.”

The minister’s statement has come after the speculation of media reports suggesting that due to the protectionist policies of US President Donald Trump, Indian IT firms were held in the middle of a big retrenchment drive. It is worth to be noted that the IT industry, currently valued at Rs 9 lakh crore, employs around 2 crore people- of which 40 lakh are employed directly. The IT sector also provides employment to about 1.4 crore professionals indirectly.

He further said that under the past three years of Narendra Modi-led government; about 6 lakh appointments have taken place in the sector. “I asked Chandrasekaran, the chairman of Tata Sons… he has said TCS alone has appointed 2.5 lakh IT professionals in the last three years. And they are going to appoint 20,000 new graduates in 2017-18,” the minister further added.

Minister Prasad also said that he had recently met Infosys COO Pravin Rao, who voiced the same opinion about the media reports on huge job cuts as completely untrue.