India's apex IT body National Association of Software and Services Companies (NASSCOM) has dispelled fears that the slowdown gripping the Euro zone and US, will have an adverse impact on Indian IT companies.

"Recessionary trends in West are not going to have any serious impact on the Indian IT sector as the industry is poised to grow further on increasing domestic demand and tapping new markets outside the Western world," a top NASSCOM official said.

"IT seems to be providing for both the good times and bad times. Yes, slowdowns happen. But we are sure about the potential of IT sector in India," NASSCOM Chairman Rajendra S Pawar said.

According to him, the domestic market in India had been growing faster in the last two years.

Also, there are emerging markets like Russia and Brazil which Indian software and service providers can tap. Even in Europe and USA, the private sector continues to be strong, he said.

The last decade had been generally considered a troubled time the world over. But the Indian IT market had kept its phenomenal growth during that period, Pawar said.

On the performance of Indian companies, he said they are currently undergoing transformation so that capable of entering new markets to provide changing requirements of services and solutions.