The Indian Government has clearly been reading this blog and bowed to our pressure to extend the Software Technology Parks of India (STPI) tax holiday. The Indian finance minister has now proposed to extend the STPI tax holiday to expire on March 31 2010, a year later than the originally stipulated March 31 2009 date.
This is a shot in the arm for the Indian offshore services sector, and the shares of Infosys, Wipro, TCS, Cognizant, WNS, Patni, Satyam, EXL Service, Genpact et al. are all expected to jump by up to 10% as a result. The additional year should give the Indian outsourcing industry the time it needs to stabilize its current issues with Rupee appreciation and wage inflation.
Thanks to all you for you great contributions on this issue.