Reacting to the economic crisis in the United States (US), National Association of Software and Services Companies (NASSCOM) said the current situation would not have any impact on the Indian IT industry.

In recent developments, there has been a downgrade of Standard and Poor’s (S&P) credit rating of the US. This has led to a number of projections from analysts and economists indicating the possibility of a double dip recession in the US economy.

“Although the global economic environment is a cause for concern, it is not likely to impact the Indian IT industry, in the near future,” NASSCOM said in a statement released last evening.

Many in the industry believe that though the Information Technology Services sector is closely entwined with the global economy, it also has a burgeoning domestic market which is equipped to sustain growth. Many see the Indian IT industry strengthening its partnership with the US customers to build greater business efficient solutions.

“The structural weakness in the economy offers opportunities to IT services companies, as we help global corporations to add variables to their IT, thus making them fundamentally more adept to compete,” said T K Kurien, CEO of Wipro’s IT Business in a media release. “We need to see if this downgrade along with the prevailing macroeconomic conditions has any further impact on the real economy, which is primarily driven by consumer and business confidence.”

Shares of IT companies like Infosys, TCS, Wipro and others continued to witness heavy selling pressure in the stock market on Tuesday. These companies earn about 60 percent of their revenues from the US market.

Market analysts state that for exporting companies like TCS, Infosys and Wipro, the outlook seems to be negative at the moment in the wake of the slowdown in the Euro Zone and uncertainty in the US.

NASSCOM said that it will continue to monitor the developments in the US, and hopes the economy will bounce back. “We are also counseling the Indian IT sector to maintain a cautious outlook while going forward,” the statement said.