India's quantum leap
"Three steps forward, two steps backward" -- that is how the Indian economy is usually described by the media. Positive developments in contemporary India only occasionally make the world's news headlines.
Here's a real Indian success story. India has taken over the software industry of the world, perhaps due to its steadfast insistence on acquiring technology concerning computer chips (rather than potato chips) from the West.
Some interesting statistics about the Indian software industry have come to light recently. India is now home to the largest pool of software engineers in the world. The country currently has four million software technicians, with 70,000 more getting added every year.
The U.S. depends on India for most of its information technology (IT) outsourcing needs. Of the top 1,000 Fortune- listed companies, 200 outsource software from India. Ninety percent of all IT companies in the U.S. rely on India for IT outsourcing operations. Thanks to satellite communications, instantaneous transfer of data occurs daily between the U.S.A. and India. Both India and the U.S.A. have come out winners in this highly fruitful partnership.
Statistically, 12 percent of all the scientists in the U.S. are Indians. Thirty-six percent of NASA, 34 percent of Microsoft and 28 percent of IBM employees are Indians. "Destination U.S.A." has become the motto for all aspiring Indian students. For sure, the cream of India is moving to the U.S.A. for studies at first, employment and settlement later. I presume that the country's huge population of one billion is presently able to cushion the effect of the brain drain from India. In the medium to long term, this factor may become a serious matter of concern for India.
However, companies like Microsoft, IBM, Hewlett Packard. Intel and Oracle have also set up software development centers in India which are all manned and run by Indians.
The Indian software industry is growing at 50 percent per annum which is more than twice that of the U.S. In 1998 to 1999, the Indian government was responsible for 28 percent of total domestic IT spending, compared to the U.S. government's 23 percent.
Through its quality personnel, India is gaining a competitive edge in the field of software technology. Foreign exchange earnings from Indian software exports were US$2.65 billion in 1999, and the estimate for the year 2000 is $4 billion. Within the next five years or so, it is projected to grow to $50 billion per year, employing 2.5 million people, making India one of the world's great technological powers.
India has indeed advanced a long way up the technology ladder.
D. CHANDRAMOULI
Jakarta