The ICT and digital economy sectors contribute over 13% to India’s GDP. The two sectors are key drivers of India’s economy, and the country wants its ICT sector to grow to $1 trillion, or 20% of its GDP, by 2025. The National Association of Software and Services Companies (NASSCOM) reported that India’s tech industry is seeing record growth, with revenue rising from US$200 billion in 2020 to US$227 billion in 2021.
All subsectors of the technology industry, including IT and business process management, IT-enabled services, technology R&D, hardware, software, and e-commerce, posted double-digit growth in 2021. India imported its $2.4 billion worth of computers and electronics (NAICS code 334) from the US in 2021. According to Gartner, India’s IT spending is projected to grow 7% to $101.8 billion in 2022.
India’s IT Sector and the US Economy
In the United States, the Indian tech industry has played a vital role in providing jobs for many Americans. The Indian tech sector has partnered with more than 75% of Fortune 500 companies, most of whose headquarters are in the United States. Indian technology companies and their customers have achieved a combined US$396 billion in sales in the US, supported a total of 1.6 million jobs, and contributed over US$198 billion to the US economy.
India’s information technology industry generated $103 billion in direct revenue and directly employed 207,000 people in the United States last year, according to new research from IT trade body Nasscom and IHS Markit, showing growths of 32% and 22%, respectively, compared to 2017.
An undeniable tool that contributes to the country’s technological growth is the India proxy. The rise in internet usage warrants the need for people to establish safety mechanisms for their devices. Consequently, the availability of tools such as VPNs and internet proxies allows seamless interaction. The internet proxies in India help the locals safely interact with content from across the world and vice versa.
Developments in STEM-Related Careers
India’s IT industry bears a significant impact on the US education system. India has partnered with over 180 schools, colleges, and universities, thereby strengthening its participation in American science, technology, engineering, and mathematics (STEM) courses. With over $1.1 billion invested in the US school system, the country is one of the most significant shareholders behind the development of American education.
The demand for STEM jobs is also expected to grow 1.5 times faster than non-STEM jobs over the next decade. Studies show that millions of STEM positions will go unfilled, as high as 3.5 million, by 2025. With India’s expertise, graduates will be able to meet this demand.
India-based tech companies have sponsored more than $3 million just for K-12 programs. These efforts have helped around 2.9 million students and teachers. Consequently, the sector has upskilled more than 255,000 employees.
Rise in Employment Opportunities
To make its presence felt on the world stage, India is pushing its level of foreign investment. An indicator of such investments can be found in a report by McKinsey & Company, where Indian industries anticipate bringing in more income from Africa. According to the same data source, India’s vital IT services, infrastructure, agriculture, pharmaceuticals, and consumer goods will boost Africa’s revenues to US$160 billion by 2025.
Indian giant Infosys, a global leader in next-generation consulting, technology, and services is no exception, with plans to employ 20,000 American workers by 2022. To that end, the company launched the Reskill and Reboot Initiative, which plays a crucial role in hiring new talent, and has since opened six technology and innovation centers in Indiana, North Carolina, Connecticut, Rhode Island, Texas, and Arizona.
The rise in employment opportunities in the US is also attributable to India’s growing information technology. Even non-traditional tech hub states like North Carolina are emerging as IT centers. These regions are witnessing an employment rate growth of 82%.
Key Takeaways
The Indian technology industry contributes significantly to the US economy by fostering innovation and providing opportunities through local investment and skill development, mainly through empowering the local workforce and educational development at all levels. The last year reported approximately six job postings for every available computer and math worker, and the number has risen to 11 positions for every available IT worker this year.
