How the Global Economy is enriched by the Indian Talent Pool?

The talent force in India is constantly growing, learning, and innovating.
The Indian Talent pool is an answer to the various push-pull factors like the technique of
problem-solving, digital literacy, relentless hard work, and the ability to adapt to new
technology.

Why does India’s Talent Pool have a greater demand?

Let’s get to know more about the Talent Pool.
India has a significant place in the global Information Technology sector. The UN
Department of Economic and Social Affairs stated that India is the leading contributor in
terms of talent to the world.
One of the key drivers behind the growth of the Indian economy is its rich talent pool
that constantly brings in digital skills, enhanced talent, and a plethora of ideas.
The Indian Talent pool is a top choice in various sectors for the following reasons:
1. The well-developed educational system in India provides a talent pool with an
excellent skill set that can meet the needs of both national & international businesses.
2. Indians are considered a trustworthy source of talent for software development or any
other positions requiring higher technical abilities.
3. Indian Universities like the India Institute of Science (IISc), Bengaluru; the Indian
Institute of Bombay (IIT); and IIT Delhi are among the best in the world.
4. Being raised around multiple communities, different languages, and cultures, Indians
are developed as experts in navigating through complex situations.
5. Hard work, robust work ethic, and fluency in English make it easy for the Indians to
integrate with the diverse tech industry.
6. India also has a low-cost advantage.

The educational sector in India

India has an important place in the Global Education Industry and has one of the
world's most extensive networks of higher education institutions. It has over 250 million
school-going students which is more than any other country. Recent reports state that
the number of universities(central, state, deemed & private) taken together is 1026.
In February 2022, there were a total of 8,997 AICTE-approved institutes in India. Out
of these 8,997 institutes, 3,627 were undergraduate, 4,790 postgraduate, and 3,994
were diploma institutes.
India was ranked 48 out of 112 countries in the English proficiency Index of 2021,
The size of the Indian edtech market is estimated to reach US$ 30 billion by 2031 and
the Indian edtech startups have also received investments worth the US $4.7 billion in
2021.
The thriving software industry has also been created by Indian education’s emphasis on
Math & Science. India has one of the largest annual supplies of STEM graduates which
is over 2 million and has a 4.7 million tech industry employee base.

Entrepreneurship in India

India also holds a significant place in the startup ecosystem.
According to the Economic Survey 2021-2022, India has the third largest startup
ecosystem in the world after the US and China.
The Indian start-up has provided innovative technology nationally and globally. 44
startups in India had turned unicorns in 2021. Most of the unicorns are in the service
sector. The factors that led to the startup growth in India are Governmental support,
online services, digital payments, etc.
Indian CEOs run some of the world’s biggest and largest companies in the Tech
industry. Sundar Pichai is the chief executive officer of Alphabet Inc. and its subsidiary
Google. He led the development of Google Toolbar and Google Chrome.
Another example is Satya Narayana Nadella, the CEO of Microsoft. In 2022, he was
awarded Padma Bhushan, the third highest civilian award in India. He has been
credited for his help to bring Microsoft's database, Windows Server, and developer tools
to its Azure cloud.

Information Technology Industry in India

The Information Technology industry is regarded to be the backbone of the economic
growth of India. It has the power to prosper exponentially and create millions of jobs in
India. The National Association of Software and Services Companies(Nasscom)
had stated that the IT industry in India will reach $227 billion in revenue in FY22.
The IT industry has made the management & delivery of various services like health
care, consumer rights, education, etc seamless with improved transparency,
Nasscom Tech CEO Survey 2022 reported that more than 70% CXOs believe FY23
to be a growth year for the industry due to the rising demand trends in technology.

How did the IT industry in India flourish?

The swift advancement in the IT industry & the liberalization policies like reduction in
trade barriers, and elimination of import duties on technology products have played a
significant role in the evolution of the IT industry.
The Government initiatives such as setting up Software Technology Parks (STP),
Export Oriented Units (EOU), Special Economic Zones (SEZ), etc helped India to gain a
leading position in the world’s IT industry.
The contribution of the IT sector to India’s GDP was only 1.2% in 1998.
But, today India’s IT industry has employed 4.5 million people and accounted for 8% of
India's GDP in 2020. There has also been an increase in the number of women in the
workforce as 44 % of the new employees in the IT sector are women.
The software exports by the IT companies connected to the Software Technology
Park of India were US$ 16.29 billion in the first quarter of 2022.
India has also improved its position in the Global Innovation Index of 2021 and was at
the 46th position. The country expects to have a digital economy of $1 Trillion by 2025.
Studies reveal that technology services in India can reach $300-350 billion in annual
revenue by 2025 if they can exploit the potential of cloud, artificial intelligence (AI),
cybersecurity, and other emerging technologies.

The growth of the IT sector can be accelerated through the efficient utilization and
enhanced training of human resources.

The Future Workforce in India

The World Economic Forum’s study on the Future of Jobs(2020), states that over 85
million jobs will be made redundant by emerging technologies and 95 million new roles
will emerge.
So, building a workforce with skills that could not be replaced by emerging technologies
is a necessity.
What are the emerging technologies in India?
Or
What are the changing Industry trends in the Indian Landscape?
Automation, digitization, and Artificial Intelligence gains much attention these days.
They have been transforming almost every industry, existing job roles, and skills
required in seriatim.
But the Economic Times reported that only 2.5% of engineers in India have artificial
Intelligence skills.

How can India reskill its workforce to the demand for AI?

1. AI needs to be introduced at a young age
The first step is to develop an interest in students for AI at a very young age. Coding
has been taught in school and just like that we need to develop a mindset for AI. The
National Education Policy(2020) of the Indian Government is a step in this direction of
technology.
2. Knowledge can be enhanced through internships
Computer Science is a field where practical exposure is required to build one’s
knowledge of the field. Only 40% of the total graduate engineers opt for internships and
this number needs to be increased to enhance their practical skills.
3. Research can be encouraged
Research is important for innovation and for developing in-depth knowledge of the
subject. Educational institutions and companies can encourage research. Facebook,
Google, etc are known worldwide for their research and development.

4. Upskilling the existing workforce to adopt AI
The existing workforce can be upskilled to meet the technical demands of AI. Upskilling
should be focused on by companies with a clear budget for capability development.
Proper training can build a ready workforce in India to meet the demand for AI.

What are the other skills required for the future workforce?

Skills like critical thinking & analysis, problem-solving, and skills in self-management
such as leadership, stress tolerance, etc play an important role in the current market
scenario. Employers have realized this trend and have applied a forward-looking
strategy to equip the workforce with the right skill prowess.

Studies have shown that there has been a five-fold increase in the employer provision
of online learning opportunities to the employees and it is bound to rise to build an
efficient workforce for the bright future of India.

To wrap up, the Indian Talent Pool constantly shapes the global economy through its
enhanced talent, ideas, efficiency, and robust work ethics.