The impact of the Japanese government’s recent decision to restrict foreign ownership in high-tech companies may not effect Indian-IT service providers as per an industry body Nasscom.
Japan has restricted foreign ownership in its information and communication sector effective August 1, primarily to ensure a strong cybersecurity framework.
Gagan Sabharwal, senior director, Global Trade Development, Nasscom told, “our companies do not have much revenue from Japan, but they have been acquiring some companies there. So, prima facie, it appears that the regulation may not have an adverse impact. We hear that it may not be ex post facto.”
Japan has traditionally been a tough market to crack for Indian firms. In recent years, IT providers such as TCS and Infosys have formed joint ventures with local entities to tap the market. Infosys said in December it would acquire 81% stake in Hitachi Procurement Services, a subsidiary of Hitachi.
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