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Earnings growth in India: Can the momentum be sustained?
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Blow for crypto scene in India! Cooperative banks body raises red flag
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Last week marked a watershed for technology startups in India, as a record bout of fundraising shifted attention to the world’s second-most populous market, just as investors were becoming spooked by a crackdown on internet companies in China. Food-delivery app Zomato Ltd. became the nation’s first unicorn to make its stock-market debut, raising $1.3 billion with backing from Morgan Stanley, Tiger Global and Fidelity Investments. The parent of digital payments startup Paytm filed a draft prospectus for what could be India’s biggest IPO at $2.2 billion, while retailer Flipkart Online Services Pvt raised $3.6 billion at a $38 billion valuation, a record funding round for an Indian startup.
The country’s ‘STEM talent by far is globally the most competitive’
The Indian IT Services industry occupies a dominant position in the global technology services landscape, providing cost effective and scalable solutions for enterprises across the world, writes Ramesh Mantri, adviser to the Ashoka India Equity Investment Trust.
Over the last 30 years, Indian IT companies have matured from being mere outsourcing vendors to ‘strategic partners’ driving large scale transformation projects in Fortune 500 companies.
India’s IT export is $150bn annually, represents circa 12% of total global IT spend and has grown by 20% CAGR over the last 20 years.
Along the way, the IT Services industry has created tremendous wealth for its stakeholders and its attractiveness is also underpinned by its superior profitability and high returns on capital compared to the broader markets.
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