India's tech industry: we contribute a lot to the U.S economy

India's tech industry: we contribute a lot to the U.S economy

Summary: Despite the global economic downturn, India's IT industry continues to woo the U.S. as a strategic partner.

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A nonprofit association representing India's IT-BPO sector released a new survey showing just how much the country's tech sector contributes to the overall U.S. economy.

A self-interested ploy? Without a doubt. But if you've ever wondered the extent of the U.S.-India tech relationship, there are some nice figures to browse.

The National Association of Software and Services Companies, or NASSCOM, released the report to underscore just how much the "Indian IT industry believes in building long-term partnerships with the United States." Whether the motive is out of desperation or admiration is unclear.

Nonetheless, a few interesting statistics from the report:

  • 280,000 jobs are supported by Indian companies in the U.S.
  • Thanks to acquisitions by Indian companies in the U.S., 54 percent growth was recorded in FY2010, up from 41 percent in FY2009.
  • $15 billion in U.S. taxes came from India's IT sector in the last five years. (To put that in perspective, the U.S. Treasury collected $2.4 trillion in 2007 alone, or about 160 times that, if I did my math correctly.)
  • The U.S. workforce directly employed by the Indian IT sector has doubled in the last five years, to 107,000.

And then there's my favorite: "Indian companies have invested more than thousands of hours annually for CSR activities and have been able to touch more than half a million lives in the U.S." Which is a Hallmark-approved way of saying that India's still the major call center for U.S. businesses.

Still, if you cut through the fluff the reality is that the ties between India and the U.S. are both proliferating and tightening as India becomes a market in its own right, and not merely America's favorite go-to for after-hours customer service. It's why we launched the India IT blog here on ZDNet, and why we expect there to be much more business technology action coming from the country.

Photo: Promex

Topics: CXO, Banking, IT Employment

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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