Indian tech firms contributed nearly $200 bn to the US economy, more than the combined economies of 20 US states

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Indian tech firms contributed nearly $200 bn to the US economy, more than the combined economies of 20 US states
BCCL
  • The Indian tech firms supported 1.6 million jobs in total and contributed $198 billion to the US economy.
  • The industry also spent $1.1 billion to grow STEM (science, technology, engineering, and mathematics) learning in the US.
  • It has also contributed $3 million for just kindergarten-to-twelfth standard initiatives.
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The Indian information technology (IT) industry has contributed substantially to the US economy last year through jobs and local investments for training next-generation talent and driving innovations.

Indian tech firms have spent $396 billion in US sales output. This supported 1.6 million jobs in total and contributed $198 billion to the US economy, which is larger than the combined economies of 20 US states in 2021, according to a NASSCOM report.

“From the value chain through to the end customers, Indian technology companies invest in American talent and technology that they augment with their global resources to develop and produce cutting-edge innovations for industries and clients,” the report said.

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The sector directly generated $103 billion of revenue in the USA, while employing 207,000 people last year. The Indian tech industry created an average wage of $106,360 for the employees in the US, according to the report.

The report is titled ‘Impact of Indian Technology companies on the US Economy and Building the current and future US workforce: role of the Indian technology industry in the US’.

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“The Indian technology industry makes a critical contribution to the US economy through local investments, fuelling innovation and the labour force, and enabling skill development for the local workforce,” said Debjani Ghosh, president at Nasscom.

The report further elaborated that the Indian tech sector works with 75% of the Fortune 50 companies, which is an annual list published by Fortune magazine that ranks 500 of the largest United States corporations.

The report also noted the sizable investments that the Indian tech industry has made in the US to grow the employment base of the country and build the next generation of talent.

NASSCOM said the Indian firms had made an investment of $1.1 billion and formed partnerships with nearly 180 universities and colleges to diversify the STEM (science, technology, engineering, and mathematics) pipeline in the country. It has also contributed $3 million for just kindergarten-to-twelfth standard initiatives, impacting over 2.9 million students and teachers in the US.

According to the report, demand for STEM occupations in the US is expected to grow 1.5 times faster than non-STEM occupations over the next decade. Around 70% growth in this demand is expected to be driven by IT occupations.

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