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Worst slump for Indian IT sector in 7 years

President Donald Trump’s ‘Buy American, Hire American’ executive order and the U.K.’s increase in visa costs as factors limiting the free movement of Indian engineers says Economic Survey of India. Moreover, automation threatens 69 percent of jobs in India, according to a 2016 World Bank report. Executive search firm Head Hunters India estimates that 175,000 to 200,000 technology jobs will be lost in the country each year through 2020.

However incremental revenue was the strongest in four years and global activity is recovering, it said. The recovery won’t be strong enough to meet India’s needs. Teresa John, a Mumbai-based economist at brokerage Nirmal Bang, predicts the current account deficit will balloon to 1.9 percent of gross domestic product in the year through March 2018, potentially weakening the rupee.

India’s second-largest software exporter Infosys. Started in 1981 by seven engineers, it’s now a company with a net profit of $2 billion and revenue of over $10 billion this year and almost 200,000 employees — mainly based in Bengaluru, India’s Silicon Valley. The company has been trying to haul itself out of a growth slowdown through job cuts and investment into news areas such as data analytics.

Sikka had created a new business line that accounts for 50 percent of Infosys’s incremental revenues over the past two financial years, while traditional businesses grew just 4 percent, said Rahul Jain, an analyst at Emkay Global Financial Services Ltd. India’s net services exports were $5.9 billion dollars in June, little changed from the previous month.

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