India Emerges as Global IT Hub, Says NSE CEO Ashish Kumar Chauhan
India's Rise as the IT Capital
Ashish Kumar Chauhan, the Managing Director and CEO of the National Stock Exchange (NSE), has declared that India has established itself as the world's IT capital, propelled by advancements in technology. He noted that the country now boasts between 20 to 30 million IT jobs that demand exceptional skills, with over 2,000 to 3,000 international IT firms setting up operations in India to tap into its vast talent pool.
Insights from Governance Now Podcast
Chauhan shared these insights during a discussion on a podcast hosted by Kailash Adhikari, the Managing Director of Sri Adhikari Brothers. He highlighted that the NSE was a pioneer in developing India's digital trading infrastructure via satellite back in 1994, coinciding with the IT boom. This innovation significantly boosted confidence among Indian engineers and showcased the nation's technological prowess during the Y2K period, attracting substantial contracts and providing a platform for smaller companies to shine.
The Impact of Technology on Growth
He remarked on the transformative power of technology, stating, "Today, technology fuels our growth, and India stands as the IT capital of the globe. It has instigated the most significant shifts in the world." Chauhan pointed out that major Indian tech firms like TCS and Infosys employ vast numbers of people, with TCS having over 700,000 employees and Infosys around 500,000. He emphasized that technology has been a crucial element in India's growth narrative, asserting, "A society that embraces IT will thrive."
Strength of the Service Economy
Chauhan elaborated on India's strengths in the service sector, which thrives on expertise rather than raw materials, distinguishing it from manufacturing. He noted that India's total exports range between $700 billion and $800 billion, with imports nearly matching that figure. This includes net services valued at $200-$250 billion and remittances of $125-$150 billion, resulting in a surplus in the balance of payments for the past four to five years. He attributed this success to India's frugality and ability to deliver high-quality work cost-effectively.
Manufacturing Advancements
Chauhan mentioned that with the production of iPhones and other electronic components shifting to India, companies like Microsoft and Google are increasingly relying on Indian talent for their AI projects. He stated that 80% of the components for Microsoft Windows are manufactured in India, showcasing the country's engineering capabilities and efficient logistics.
NSE's Role in Economic Growth
Discussing the NSE's upcoming SME Exchange, Chauhan noted that the number of investors in India has surged from fewer than a million in 1994 to 110 million today, with participation from all corners of the country. He highlighted that women now represent 25% of investors, and one in five households is involved in investing through the NSE. Chauhan emphasized that the NSE serves as a vital platform for businesses and entrepreneurs to connect and grow.
Market Transparency and Trust
He explained that the stock market promotes transparency, which helps eliminate inefficiencies. The market capitalization has grown from Rs 3.80 lakh crore in 1994 to Rs 4.40 lakh crore today, a remarkable feat for a country with a low per capita income. This growth is attributed to the trust investors place in the market's transparency.
NSE as an Economic Catalyst
Chauhan concluded by stating that the NSE acts as a catalyst for the Indian economy, processing over Rs 2,000 crore worth of orders daily and ensuring that trades are reflected in investors' accounts within a day.