Is China a threat to Indian software industry?

china threat to india

In Favor:-

  • China’s IT spending is increasing rapidly. Chinese govt is supporting a lot to IT sector.
  • More and more Chinese firms are going private and are able to give tough competition for Indian IT giants.
  • Chinese firms are concentrating more on providing attractive jobs for graduates in IT sector.
  • China overcame the problem of talent shortage as the no. of IT graduates in China is increasing at a great rate.
  • Chinese service providers are focusing more on large scale development and on innovative Research & Development.
  • China has crossed India in the availability of software developers.
  • Many Indian software professionals are not working for India. They are working for foreign countries. More than 100,000 Indians migrating to the United States each year for better-paid software jobs. This is a big disadvantage to Indian software industry.

In Against:-

  • Initially China concentrated mainly on manufacturing sector and now China is the world’s largest manufacturer. China’s focus on software industry started very lately, and now it is much difficult to compete with the countries like India, which are already among the top most countries in IT sector.
  • Chinese engineering graduates are focusing more on manufacturing sector than IT sector as the China’s software industry is unable to offer attractive, exciting and fast moving career opportunities.
  • China is lacking in English-speaking talent pool. So, China cannot overtake India anytime soon on outsourcing.
  • China’s outsourcing industry’s serving mainly Japanese and Korean companies due to language barriers.
  • Many Chinese service providers are focusing more on domestic market than international market. 
  • China lacks efficient policies regarding data privacy and intellectual property protection.
  • India is producing more no. of engineering graduates than China.
  • Indian graduates are more exposed to processes & systems during their course of studies because of the evolution of IT industry over the last two decades.
  • At present, India is far ahead than China in IT sector and it is developing too fast to catch it.
  • Many Indian IT companies opened their branches in China and are recruiting graduates from Chinese universities. It’s a plus for India.
Also Read :  Why is India one of the biggest defence equipment importer?


China is definitely not a threat to Indian software industry as India is far ahead than China in IT sector and the India’s software industry is developing faster. Anyway, it’s good to have healthy competition. Competition helps both countries to develop themselves.

Afterwords :- What are your thoughts on this topic? Feel free to express your opinion in the comment section below.

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  1. China is way more ahead than Indian in IT sector. China’s Sunway TaihuLight supercomputer are the world fastest supercomputer with its own chip. What about India? China have 167 supercomputers on the top 500 list, what about India? China Huawei company are the world largest telecommunication equipment sellers, what about India? China Huawei company won short code for 5G standard last year. China’s Huawei company also are the world third largest smartphone sellers, what about India? China also have Tencent wechat and Alibaba in the world for social media and e commerce, what about India? There is no way for India to compete with China. For China’s manufacturing sector is not because of cheap labour, but because of complete industrial system, which China are capable to producing everything, anything you can name it.

  2. its a wonderfull topic and i realy want to speak about this topic .. – cn you give me some important points about this topic so i improve myself more and more .! and i agree your some point ..
    thnx you 🙂

  3. Despite what is stated here, China is a gowing theat to India and sooner we recognize this and shed complacency, better it is.

  4. pls let's address purely technically sound ideas by which the GD will be outstanding and sensefull.

  5. thanx!! gr8 work!!! short capsule form!!! thanx again…n god bless… 🙂

  6. i think 'in against'points are more related to the topic comparing Indian & chinese software industries but 'in favour' points are not so related to the topic .but any way u have given me some valuable points in view of against.thanks a lot again.

  7. plz provide more information in favoue of the topic that must be tecnical n reasonable reasons…

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