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The Indian IT sector made a remarkable contribution to the tune of $198 billion to the US economy in 2021. The sector generated revenue of a whopping $103 billion last year. Further, they also directly hired 207,000 Americans with an average wage of $106,360, registering a growth of 22% in employment since 2017. In the US, the Indian technology industry has played a vital role in expanding the talent pool outside of traditional tech hub states. The Indian tech firms work with over 75% of the fortune 500 companies and most of them are US-headquartered.
The latest report of Nasscom and IHS Markit 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" noted that the Indian IT industry has made sizeable investments in the economy along with its commitment to grow both its US employment base and support in building the next generation of talent.
As per the report, the direct impact of the Indian technology industry has assisted the US to register $396 billion in sales to date while creating 1.6 million jobs and contributing $198 billion to the country's economy - larger than the combined economies of 20 US states during 2021.
Further, the report highlighted that in order to strengthen and diversify the STEM pipeline, the Indian tech companies pumped over $1.1 billion and developed partnerships with nearly 180 universities, colleges, community colleges, and others in the US.
Also, the Indian tech firms provided more than $3 million for just K-12 initiatives. As per the report, such efforts have touched around 2.9 million students and teachers to date. Additionally, more than 255,000 current employees have been upskilled by the sector.
India's technology sector has played a significant role in expanding the talent pool outside of traditional tech hub states, the report stated. Such has contributed to some of these states like North Carolina in becoming emergent tech hubs. In the last decade, these states witnessed a growth of 82% in employment rate -- making outsized contributions, particularly in those states which have below US average concentrations in IT talent.