"Indirect impact is what we all need to think about... demand for oil will increase ...oil prices could go up again. There are concerns over inflation. There are also concerns over disruption of economic activity, a lot of components for the electronic industry, automotive industry all originate from Japan," Infosys CEO Kris Gopalakrishnan said.
He further added that the concern is over whether the "economic activity will come down, GDP growth will come down, which means investments will come down, which could have an impact on the IT industry".
The company, however, expects the direct impact of the Japanese crisis to be minimal on its business in the short-term. "The percentage of revenue from Japan operations is less than one per cent or approximately one per cent because of which the direct impact is minimal," he said.
"The situation is still unfolding, it is very difficult at this point to say, but it is possible there could be some indirect impact, but the direct impact could be minimal," he reiterated.
