A report released by a leading think tank for science and technology policy says, Washington seeks strong political and cultural ties with India. With its abundance of highly skilled technical professionals and IT service providers, no nation is better than India to counter rising China.  

The Information Technology and Innovation Foundation (ITIF) think-tank released a report on Wednesday Describing the worst and the best case scenarios. 

In the first scenario, it says that the tensions between India and China have been resolved and many business collaborations have come in the aftermath. It can make a huge impact on the global economy while attracting more investment to the east.  This can damage the US economy and there would be little the US could do about it. 

In the second scenario, the interests of India and the United States become increasingly aligned, as the economic, military, and international relations challenges from China grow. In such a case, democratic norms could prevail across most of the developed world, as developing nations start looking to a 'Delhi model' instead of a 'Beijing model'.

As America seeks to counter a rising China, no nation is more important than India, with its vast size, an abundance of highly skilled technical professionals, and strong political and cultural ties with the United States.

But the parallels between America's dependency on China for manufacturing and its dependency on India for IT services are striking.

The interplay between the United States, India, and China will shape global competition and digital innovation for years to come. While there is a wide range of possible scenarios, two things are clear: India should be an essential part of US efforts to compete with and reduce its dependence on China, and this will inevitably expand America's global dependencies from manufacturing to services.

The report however cautioned that "overreliance" on India as an IT services provider could become a strategic problem if major disagreements emerge between the two nations on issues such as intellectual property, data governance, tariffs, taxation, local content requirements or individual privacy.


Related Blogs