Geo Politics Vs Indian IT industry
You might have heard of the word “GeoPolitics” pretty often in recent times.
What is GeoPolitics?
According to WikiPedia Geopolitics focuses on political power linked to geographic space. In particular, territorial waters and land territory in correlation with diplomatic history.
Even I have read the above line three times to make sense :). In simple English, Geopolitics is a way of looking at the world, considering the links between political power, geography, and cultural diversity.
So, now what is the relationship with GeoPolitics and any business Industries. The world is divided by political boundaries and those boundaries are named as “Nations” based on multiple factor. These nations own the resources of their boundary. Though every nation trying to be self-sufficient with all their needs like water, food, technology and military power, there will always a need of international trades for importing and exporting. So, where GeoPolitical issues such as war, protest and climate change; it affects the way international trade happen.
With above introduction, we have to talk about Indian IT industry and how much it is affected by Geopolitics.
India’s total exports accounted as $660.50B in 2021. Highest being petroleum product, followed by jewels and other items.
Value of total exports of Indian software services in 21-22 is US$ 171.9 billion (increased by 15.9% from previous year). Majority of exports is happening to the United States 42.5%, followed by the UK at 23.5%.
Geopolitical situations like the Russia – Ukraine war, poor implementation of climate-change initiatives, challenges in Cryptocurrency adaptability and many more; will bring disagreements amongst countries. When countries forms alliance with the friend countries for what they believe is right, then the international trades are at risk. Like recent announcement of the US about Russian oils and threatening India trades is a good example.
Though above point in a fact, when its comes to IT industry, India has very strong hold because of its talent placements on many important global projects. As per the ‘Science and Engineering Indicators 2018 report’, released by US-based National Science Foundation. India is world’s #1 country in producing engineering and science graduates. India Home To 25% Of All Engineers.
Even though we have a strong hold, still we can’t escape huge geopolitics issues, but we can definitely say IT industry would be in bottom of list, when it comes to Geopolitics.