India’s information technology industry has sound fundamental drivers, despite some headwinds from adverse currency movements and geopolitical concerns, R Chandrasekhar, President NASSCOM said.

“I think the fundamentals are entirely sound in terms of the demand across the globe, in terms of the relative shortage of skills in other countries, which has been a significant driver for the industry in India, all of these remain intact,” Chandrasekhar said, speaking to CNBC-TV18.

He pointed out towards the Gartner report that was released a fortnight ago, which had projected a growth of 4.6%-4.7% in IT services over the next two years and at 12.8% over the next five years. “By any standards, that’s a very healthy growth rate and if that is not healthy then I don’t know what is, in today’s circumstances”, Chandrasekhar said.

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He also spoke about Perspective-2025, a report by NASSCOM and McKinsey, which forecasts Indian IT services industry to grow at a CAGR of around 11% and reach USD 220 billion by 2020 and USD 350 billion by 2025. “So clearly we seem to be very much on track on that score”, Chandrasekhar said.

However, Chandrasekhar said that there are concerns too. According to him, strengthening of Indian Rupee and restrictions on the number H1-B visas being issued to Indian IT workers are major concerns, but should not be exaggerated as there are other concerns as well. Chandrasekhar said that depending upon the business strategies, operating structures and geographies of operations, individual companies may have individual concerns but the industry as a whole is not in the doldrums.

Earlier in the day, Infosys FY17 Q4 results were declared. Although the results were in line with the expected numbers, there was a sense of disappointment amongst the investors as far as the revenue guidance for the FY18 was concerned. Infosys offered bleak outlook for the future, with the constant currency revenue growth guidance for the fiscal year 2017-18, projected at 6.5%-8.5%, lower than the expected industry average for the period.