Review
Over the past few decades India and China have made huge development in major sectors of their respective economies. Of these sectors the development in the services sector holds special importance. With over $60 billion of business in IT sector, India has emerged as a one of the big players in computer related services in Asia and perhaps in the world with China having matching figures as a competitor. As the experts see it India has the fastest growing IT business in the whole world but a bit weak infrastructure to handle such fast growth whereas china is lagging a little behind with strong infrastructure. Now the battle is that in the coming decade who is going to capture the world’s IT market, India or China? And on the basis of what?
This paper “who will be the main global IT services hub: India or China” by Seema Joshi holds a study on the basis of several key indicators that tells us what are the prospects of both the countries as to growth in IT sector in the coming decade. In this article writer makes a comparison between the growth facts of India and China showing that China is growing at a faster rate than India with former growing at 10 percent and the latter at 6 percent.
From GDP statistics, the writer showed that in 2006/07 the miscellaneous portion of the exports of India was around 77 percent of which 38 percent was related to software exports bringing in around $30 billion in revenue. That revenue was expected to rise at $60 billion in 2008/09 which was successfully achieved. The writer also provided stats in the form of a breakdown of IT industry earning by sector with software exports as the major component standing at $39.7 billion in 2007. A comparative analysis of services sector performance in China and India was also provided showing the respective A-I-S output and their respective growth rates with China taking a lead in all sectors. The writer also included the comparison of the sources of strength of the services sectors in China and India with poor infrastructure in India holding back its growth. Lagging behind in transport infrastructure, social infrastructure, ICT diffusion infrastructure and business environment; the prospects for India doesn’t look so good as to growth in IT sector.
From all the statistics and data analysis provided in the paper, it is fair of the writer to say that, India right now has an advantage over China in export of software service but in long term China hold the advantage in growth of both software exports and services sector as a whole as China has all the better infrastructure to support the higher growth rate and business environment whereas India don’t! Unless and until there are drastic measure to improve infrastructure in all above mentioned areas calling India an IT powerhouse may be too soon but still Indian IT market has a long way to go.
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