You are here: Home » International » News » Politics
Business Standard

No nation is more important than India as US seeks to counter China: Report

As US seeks to counter a rising China, a leading think tank for science and technology policy has said no nation is more important than India with its strong political and cultural ties with the US

US India relations  | US China | China

Press Trust of India  |  Washington 

US calculated India's cotton subsidy in Rs, ballooning figure: Officials

A leading think tank for science and technology policy has said as Washington seeks to counter a rising China, no nation is more important than with its abundance of highly skilled technical professionals and strong political and cultural ties with the United States.

It however cautioned that "overreliance" on 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.

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

In one, tensions between and are reduced and the many business synergies between these two neighbouring nations come to the fore. In this case, the heart of the global economy would shift to the east, and there would be little the United States could do about it, the report stated.

In the second scenario, the interests of India and the United States become increasingly aligned, as the economic, military, and relations challenges from 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', it stated.

"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 for manufacturing and its dependency on India for IT services are striking," said the think-tank.

According to David Moschella, a non-resident senior fellow at ITIF and co-author of the report, the same forces that increasingly divide the United States and China are now pushing the US and India closer together.

"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, he said.

"America's technology dependencies on India in the 2020s seem certain to rise. Yet it is important to know whether the United States will be dependent on a strategic partner with strong mutual interests, or on an increasingly neutral rival," said ITIF president Robert D. Atkinson, who co-authored the report with Moschella.

Much will depend on the strategic choices that the Joe Biden administration and Indian government make in the next several years. One thing is clear that economic and geopolitical stakes could not be higher, he said.

The report describes how India is making important progress in research and development, innovation centres, machine learning, analytics, product design and testing, and other areas, especially in IT and life sciences.

While leading US tech companies are well-positioned in India's booming Internet and e-commerce marketplaces, strong local competitors are now emerging. Outside the technology sector, US companies operating in India face stiff competition from Chinese, Japanese, Korean, Indian, and other firms.

Although doing business in India is still often difficult, most large US companies have expanded significantly to having IT service providers, large operations, or their own India-based capability centres, the report stated.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, April 13 2021. 07:43 IST