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Economy

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January 10, 2018

Increasing protectionism in the West and the rise of new digital technologies pose both challenges and opportunities for India’s IT services industry. Discuss. (200 words)

Refer – Live mint

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Bhishma 6 years

In a globalised world, protectionism and nativity policies hinder free trade and open market economy. The US protectionism has its impact on Indian IT service industry in following way:

Challenges:

1. The immediate impact is on the immigrants from India, on their employment and residency, who are highly skilled personnel as opportunities to them in India are limited.

2. India's IT exports will be greatly impacted, as exports to US generate great revenue.

3. India's IT sector is majorly traditional in nature (application design, management) and the new technologies like Data analytics, cloud computing, artificial intelligence (AI), automation are in developing stage, which are essential for present day booming e-commerce, smart phone industry etc.

4. Countries like China which offer cheap labour and highly skilled work force, pose great competition to India.

5. Indian schools and Universities needed to be upgraded to accommodate and tech latest technologies.

Oppurtunities:

1. India is an emerging market, and needs new digital technologies for domestic industry.

2. Schemes like Start up India, Make in India, tax incentives etc can help bringing IT industries to India, slowly reduce dependence on imports.

3. Indian IT industry needs to upgrade the skills of its workforce to not only cope with ongoing changes but also remain a magnet for American, Chinese and other MNCs.

4. Indian educational institutions play a key role in producing a productive workforce. Hence, reforms in educational system are required and institutions should be upgraded to match the present day needs.

5. Easing investment, re-skilling, research and development can help boost IT service industry in India.

IAS Parliament 6 years

Good Attempt. Keep writing.

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