Points to speak on ‘Is China a threat to the Indian software industry?’:

  • Initially, China concentrated mainly on the manufacturing sector and now China is the world’s largest manufacturer. China’s focus on the software industry started late, and now it is much more difficult to compete with countries like India, which are already among the top countries in the Information Technology (IT) sector.
  • At present, India is way ahead of China in the IT sector, especially in the global IT market. India is one of the largest exporters of IT services globally. China’s software revenue is mostly from within the country. So, it is very difficult for China to catch India in the global IT market in the near future.
  • Even though China’s IT spending is increasing rapidly, most of the investment is spent on autonomous driving, Artificial Intelligence (AI) and cloud services. India too needs to increase its investments in these technologies to not fall behind.
  • India has abundant human resources in the IT sector as more and more Indians are joining IT jobs. However many Indian software professionals are not working for India. They are working for foreign countries. Many Indians migrate to the United States and other developed countries for better-paid software jobs. Brain drain is a disadvantage to the Indian software industry.

Conclusion:-

China is definitely not a threat to the Indian software industry as India is way ahead of China in the IT sector, especially in IT exports. India has abundant human resources in the IT sector.

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