Indian IT companies contributed $57.2 billion to American GDP in 2017


Posted on July 31, 2019 by Nitish

In 2017, Indian IT companies significantly contributed $57.2 billion to the US GDP, as highlighted by India’s Ambassador to the US, Harsh Vardhan Shringla, during an address to business leaders in Denver, Colorado. These companies, operating globally from India, also played a substantial role in the US job market, employing over 175,000 workers, constituting 8.4 percent of the employment in the computer systems design and related services sector.

Speaking at the 2019 State International Development Organisation (SIDO) Conference on US-India Trade and Investment, Shringla emphasized that Indian IT firms have become integral to American society, extending their impact beyond the economic realm. He cited instances such as TCS launching the “My Future in School” education initiative in 2017, Infosys partnering with Trinity College on the Applied Learning Initiative in September 2018, WIPRO’s collaboration with First Book to distribute over 200,000 books by the end of 2019, and Mindtree’s $2 million grant to Stanford University in July 2018 as examples of their contributions beyond business operations.

Shringla also noted that the bilateral investments between India and the US had reached approximately $60 billion, with the US being the sixth-largest source of foreign investment in India, totaling $45 billion. Addressing the SIDO convention’s India event, he stressed the critical juncture in the US-India relationship, highlighting the need for evolving ties amid the changing landscape of global trade relations.

Nisha Desai Biswal, President of the US India Business Council (USIBC), emphasized the importance of state-to-state ties in supporting Indian companies investing in the US and vice versa. She asserted that the relationship requires adaptation to the evolving global trade scenario.

Shringla acknowledged India’s commitment under Prime Minister Narendra Modi to elevate US investments in the country, ensuring profitability and safeguarding intellectual property. He highlighted initiatives like India’s National IPR policy, launched in 2016, aimed at promoting intellectual property rights awareness and simplifying patent procedures. The government’s efforts included conducting 50 enforcement workshops for police officials across states, along with the creation of an IPR enforcement toolkit for policymakers.

The ambassador showcased India’s progress across sectors, citing the country’s impressive rise in the World Bank’s Ease of Doing Business ranking to the 77th position and the 52nd rank in the Global Innovation Index over four years. He attributed this growth to Prime Minister Modi’s ‘Make in India’ initiative, noting India’s position as the world’s fourth-largest auto industry and the third-largest domestic civil aviation market.


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