Business leaders like Phaneesh Murthy, Kiran Majumdar Shaw say Barack Obama's re-election good for global economy

GURGAON/NEW DELHI/BANGALORE: Business leaders today said that re-election of Barack Obama as the US President will be good for global economic recovery and expressed the hope that issues on outsourcing to India will be resolved.

Industry body Ficci said it "expects the new administration to set the US economy firmly on the path of revival and robust growth. This would be of great significance for the world economy and Indian exporters should be looking at a sustained rise in demand in the US".

Nasscom, the industry body of software services companies which earn up to 85 per cent of revenue from the US and European markets, said opposition to outsourcing in the US is actually targetted at the manufacturing sector and not IT services.

"Every time there is anti-outsourcing topic, we always take it as it's for our industry " Nasscom President Som Mittal said, adding that "many of the jobs (in the manufacturing sector in the US) have moved (to China)".

"We are solution to many of the problems that US faces. There is a realisation (in the US) that we are part of the solution," he added.

Software major iGATE's CEO Phaneesh Murthy, however, cautioned by saying that it is not the best news for IT outsourcing industry. "Not the best news for India or the IT outsourcing industry. However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us," Murthy said.

Biocon chief Kiran Majumdar Shaw expressed the hope that "outsourcing rhetoric will die (down)" and said it is good for the Indian pharmaceutical sector.

There have been heated discussion on how Indian business interest, especially IT outsourcing, will be impacted if Obama's is re-elected,segment.

Obama in his first term as the US President had ended years of tax incentives to those US companies which created jobs overseas in places like Bangalore. His comments like "Say no to Bangalore and yes to Buffalo," had also set alarm bells ringing in the Indian IT outsourcing industry.