India’s current foreign relations

The dynamics in global relationships are changing frequently. Some have been favourable to India and others are posing challenges for its growth.

India ensured a clear approach on West Asia policy. A combination of investment, defense and security, counter terrorism was understood with Gulf Arabs and Iran. This is done tactfully, while maintaining a a special relationship with Israel. The crown prince of UAE, will be India’s chief guest for Republic Day 2017. Maintaining a deeper relationship with Gulf countries should help further weaken their current unhealthy relation with Pakistan
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(image courtesy: Indianexpress.com)

Africa is India’s maritime neighbour separated by Indian Ocean. With huge resources and opportunities evolving, African countries would be definitely a strategic and economic partner to India.

With active participation in Naval exercises and making this years Nuclear deal, India has made a very progress in strengthen the relationship with Japan. It also started passive support to other countries along with Japan in keeping tab on China’s aggression in south China Sea.

Key nations has always been curious about Trump’s strategy. Well, with India it seems to be have positive till now. His ‘remarks’ till now placed India in a comfort zone, also considering his remarks for Pakistan and China. The only thing that is bothering till now is on the visa’s and its impact on IT industry. Experts has given mixed opinions on it, but India need not worry on it immediately.

Relations between Russia and India peaked in October this year after the annual summit held in Goa. Russia has been a reliable partner in defense, nuclear energy. However instances like Russia’s strategies supporting Taliban to check Islamic State would hamper the relationship.

It is quite evident that Pakistan has been one of the biggest threats for India in the area of terrorism. While India can make certain aggressive steps like in Indus Water Treaty, it will have implications. With new man as GHQ, India can wait and see on how Pakistan’s next step.

China has been India’s hindrances for economic growth. At the same time we rely on China on many areas, how India deals with China in 2017 will determine its own global rise.

With alliances and relationships getting complicated globally , India should be cautious choosing its strategies.

(Analysed from Indrani Bagchi, TOI, Stanly John from TheHindu,NILOVA ROY CHAUDHURY, RIR sudanvisiondaily.com)

Is China a threat to Indian IT companies?

Studies show that Chinese software outsourcing firms are unlikely to catch up with Indian and other global software services firms anytime in the near future, despite a major policy push towards outsourcing from China’s central government in recent years. Language barrier has also played a huge role in China’s inability to attract large outsourcing contracts at a time of increasing commoditization of IT services. According to a survey 79% of IT services firms in China have been in business for less than 10 years. On the other hand, top US and Indian IT firms have been around for the better part of the last three decades, in some cases, even longer.

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China has also faced the problem of attracting the best talent, with the country’s engineering graduates not looking at IT services as a primary option for employment, instead focusing more on manufacturing firms. China currently trains 1.1 million engineers annually, according to a recent report by Kotak Institutional Equities. Since 2006, the Chinese government has tried to build expertise in software outsourcing. It identified 20 cities where such firms could be developed.

 The average profitability of Chinese IT services firms went down from 10-15% to less than 5% over the past two years, while that at most large Indian firms was in the 15-25% range

Experts say China’s focus on the domestic market and Japan may have hindered its ability to gain market  share in other growing economies.

To be sure, China’s IT industry was never considered to be a serious threat to traditional multi-national and Indian outsourcing giants, such as IBM, Accenture, TCS, Infosys, Wipro Etc.