Indian industry trade body Nasscom is on day two of its three-day annual conference, where the message has been “prepare for the worst, hope for the best”. It seems to have opted for the latter, despite attendance and sponsorships being 20% down on last year.

Last week, the organisation released figures for the Indian IT software and services market, which show that aggregate revenues for the sector are expected to reach $60 billion by the end of fiscal 2009. Export revenues are predicted to show healthy growth of 16-17% – reduced from earlier predictions of 20%.

Forrester and Gartner analysts are less upbeat about India's domestic prospects, suggesting that overseas firms are moving much faster to exploit the local market as a source of future growth.

India will account for just $34 billion of the $1.66 trillion global IT services market this year, according to Forrester, while the global market for goods and services will fall three percent this year.

The local Indian market is, despite the boom in outsourcing and services to the west, almost a green-field site, with just two percent of the local population owning a PC.

Such statistics are manna from heaven for at least one American company. Speaking at the event, Cisco's chairman and CEO John Chambers delivered his customary evangelical sermon about the strength and innovation of the networking behemoth.

I have witnessed similar Chambers speeches at other events: he walks among the crowd and bestows his beneficence upon the implicitly humble, meek and lowly. It can be truly unnerving.

Some of the audience were less than impressed, with Nasscom's own blogger describing Chambers as a “robot” struggling to access a hidden message in his head.

Others complained that he didn't talk about India's potential at all – the supposed subject of the speech – but simply came down from the Mount with his ancient stone tablets, presumably with smoke and electrical sparks issuing from his ears.

But the real message was clear, as it always is: “we are here to sell to you”. Cisco has expanded aggressively into India, investing more than $1.2 billion in the past four years. The company aims to make Bangalore its global HQ outside the United States.

One local official understood the message for local Indian suppliers. "The IT industry has looked outwards. Now it is time to look inwards," Commerce Minister Kamal Nath told delegates.