New Delhi: In an endeavour to reign in White House, President Barack Obama won second term on Wednesday. In the backdrop of a struggling US economy, people were apprehensive about his victory in his bid to get re-elected as US President.

Obama good for global economy: Industry

Though, soon after coming out victorious, the US President said “I am looking forward to working with leaders of both parties in the coming months to reduce deficit, reform taxes and on issues of immigration.” Obama believes in the future of America when more jobs will be created and a new security for middle class is provided.

However, the United States is still digging out from the deepest recession in 80 years, and employers are barely adding enough jobs to keep pace with population growth. Trillions of dollars of household wealth have vanished in the housing bubble, while the gap between rich and poor widens.

But historically, voters have given a second term to incumbent president who presides over even modest economic growth during an election year.

That pattern appears to have held for Obama. If the economy is not exactly roaring ahead, it improved steadily over the course of the year.

Obama was also helped by the fact that voters largely blamed the recession on his Republican predecessor, President George W. Bush. Obama made that a central part of his campaign message as he argued that Romney would bring back policies that precipitated the crash.

INDIA INC OPTIMISTIC

Meanwhile, leaders of India Inc on Wednesday welcomed the re-election of Barack Obama as the US President saying that continuity will be good for bilateral relations, but some of them expressed concerns over the outsourcing issue.
 
Bharti Group Chairman Sunil Bharti Mittal said: "It is on expected lines but there was some heat reported in the last few days. I think it will be good for India. There will be continuity."
     
When asked about concerns over outsourcing he said: "I have heard this in the previous election. We saw Mr Clinton had taken heavy on outsourcing and we did not see anyone of these impacting our outsourcing business or relationships."
     
Obama has won a second term in office overcoming a stiff initial challenge from his Republican challenger Mitt Romney. During the presidential campaign, Obama had criticized outsourcing of jobs to countries like India saying that US needs to create jobs locally.
     
The US and European markets account for over 80 percent of revenues of the Indian IT industry.

"This is a good development for India. Between two large economies, there will be issues and concerns. Outsourcing is also a concern and I hope it will be addressed soon," Godrej Group Chairman Adi Godrej told reporters on the sidelines of the World Economic Forum on India here.

BPO industry veteran and former CEO of Genpact Pramod Bhasin, however, said the issue of outsourcing was more than plain election rhetoric.
     
"I think there will be greater implications as he (Obama) focusses on issues like unemployment. I just hope he remains true to free trade and all the other things that he talks about so well," he said.

IT SECTOR APPREHENSIVE

The re-election of US President Barack Obama is not good news for IT outsourcing industry, according to CEO of iGATE, Phaneesh Murthy.
     
"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. "The concern over the deficit and jobs will continue (in the US) and in my mind, will force the sluggishness to remain in the economy," he said.
     
Obama won a second term in office overcoming a stiff initial challenge from his Republican challenger Mitt Romney. Obama in this presidential elections campaign had criticised outsourcing of jobs to countries like India saying that US needs to create jobs locally.
     
The US and Europe account for over 80 percent of revenues of the Indian IT industry.

INITIAL IMPACT

As the news of Barack Obama winning the US election broke out this morning, it seems to have impacted the BSE Sensex positively, it surged 92 points higher to trade at 18,909. Gold also hit one-week high.

(JPN/Agencies)

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