For years, India has been seen as one the most capable economies of the world. Seems, the scenario is changing swiftly and India is losing its position in world economy. 

As per a latest report, S&P Ratings Services has cut India's outlook to negative from stable. Responsible factors given for the change are its slow progress on its fiscal situation and deteriorating economic indicators. Indian IT firms which are reviewed for the rating include Infosys Limited, Tata Consultancy Services and Wipro Limited. 

It is found, India's fiscal discrepancy increased to about 5.9 percent of GDP (Gross Domestic Product) in the fiscal year ended March 31st, far above the government's 4.6 percent target.

In response, Wipro's Chief Financial Officer, Suresh Senapaty shared his views, it is 'quite unfortunate' and that the S&P had responded earlier than required. 

It is important to note that presently, Indian IT firms have just 15-20 percent of the global market. However, they have scope and potential to become much bigger player.

Industry experts added, Investors are losing confidence in India’s Growth Story. Indian IT firms should keep an eye on emerging economies and newer verticals to sustain their growth momentum. Indian IT sector has been doing exceptionally well and will continue to attract some attractive bunch of people. But it cannot rely on the past services to withstand the economy which is sliding into recession. 

However, Indian government has huge plans for e-governance, which opens up more opportunities for IT firms. 

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