India has climbed the ladder of the Global Innovation Index from 81 to 52 between 2015 and 2019.
Since the 1980s, India has been the port of call for Multi-National companies by providing low-cost outsourced software and support services. Product design companies of India along with top-notch CAD outsourcing services have been the main attraction of MNCs. The developing atmosphere of outsourcing in India has also fueled the process of the formation of a technology hub in India. People have been speculating about the development of India as the emergence of new ‘Silicon Valley’.
Why is India being considered as the next technology hub?
India is emerging as a dynamically growing next technology hub. Apart from services provided by product design companies and excellent services of outsourcing in India, various other factors are playing an important role in the development of technology hubs in India.
- Growing International Conflicts: US president has recently signed an executive order for creating a ‘China-free’ supply chain in strategic industries. According to experts, this can give a humongous boost in the development of a global technology hub in India. Tech companies like Samsung, Apple, Amazon, etc. are trying to shift their production chains to India from China. They are already opting for Indian product design companies, CAD outsourcing, and other services of outsourcing in India.
Diplomatic initiatives like Quad membership [ Quadrilateral Security Dialogue ] with the US, Australia, and Japan have increased the global importance of India which is attracting new FDI investors.
- Increasing Investment In Tech-Sector: The Hinrich report says that the US, Taiwan, and Japan are India’s largest foreign investors. Google has allied with Reliance Industries Ltd. To invest $4.5 billion to develop new tech innovation, specifically affordable mobile phones. Microsoft Corporation has announced to invest Rs. 2000 crore in the next three years. Tata group has also stepped up to invest Rs 5,000 crore to develop the Apple phone component plant in Tamil Nadu. Rolls Royce has tripled its R&D staff in India while planning to invest in native start-ups. This will favor the environment of the formation of a technology hub in India. India has received an FDI of $7.92 billion in the sector of outsourcing in India along with an FDI of $7.75 billion in the IT sector.
- Government Policies: Indian government is making efforts to attract more FDI and create an innovation-supporting atmosphere. India’s Ease of Doing Business Ranking has enhanced from 100th to 63rd position in the past 3 years. The Indian government has sanctioned 6 policies under the ‘Made in India Campaign 2014’. The government has also launched the Skill India Campaign in 2015 to train and upskill 400 million+ people in India in different skills till 2022. As part of India’s Covid plan, the government has initiated the ‘Atmanirbhar Bharat’ plan also. Under NEST, India has collaborated with foreign partners in the area of 5G and AI Intelligence.
- The skillset of the young population in India: Since the initial days of globalization, India has been a favored choice of many foreign countries for their outsourcing and product designing services. Because India’s young population provides a good workforce in terms of outsourcing services. Outsourcing in India has recently been valued as a $150 billion industry.
Outsourcing in India has developed far beyond usual R&D services and product design companies. India accounts for the largest pool of engineering talent [28%] among all the outsourcing service providers in the world. Outsourcing in India also surpasses the share of China [10%] and Russia [11%] in the field of outsourcing service providers. CAD outsourcing in India has been the most important fascination of MNCs, because of the offered competitive prices and standardized quality of work.
India is emerging as a new technology hub which has boosted Indian economy. Recently in a survey, European and US outsourcing firms have ranked India as their top outsourcing destination. NASSCOM has also stated that approximately half of the Fortune 500 companies choose outsourcing in India for their software development along with CAD outsourcing. If things go well then, we can soon experience the full bloomed technology hub in India which will take India’s economy to new heights.
Increasing R&D requirements in India has inspired many new businesses and supported their growth. Sudarshan CADD Technologies is one such company that believes in delivering the finest services with Innovation, Optimization, & Acceleration. We are known for offering the best Product Development & Engineering support to all our clients.
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