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Day 9 – Q 2.Do you think IT sector in India is under threat? Critically examine.

2. Do you think IT sector in India is under threat? Critically examine.

क्या आपको लगता है कि भारत में आईटी क्षेत्र खतरे में है? समालोचनात्मक जांच करें।


  • The answer contains two parts, 1st part you need to provide points to prove how it is under threat. 2nd part you need to show how it is not or how to tackle them. Since it is critically examine, don’t balance it. Give more concentration to any one part depending on how much points you have.
  • Introduction and conclusion of 2-3 lines is must.


After LPG reform, India’s growth and development was fueled by IT sector. Today IT alone contributes more than 7 percent to India’s GDP. But due to various reasons, the sector’s growth is under threat.


Why IT is under threat:

  • Protectionism: Raising protectionism trend across the globe.
  • Visa Issues: USA’s H1B visa, UK white collar jobs visa has come under severe criticism from local workers.
  • Automation: High automation in the sector has led to reduced job growth rate.
  • Artificial intelligence: Most of the high skilled jobs will be taken over by machines and robots.
  • Global slow down: The global economic growth rate has slowed down due to stagnation of growth in western nations.
  • Job retrenchment: High job losses or lay-off are reported form many high profile companies.
  • Skills: Market relevant skills are lacking form young graduates.
  • Competition and cheap labor: From other countries to attract MNC’s especially Vietnam, Philippines, Singapore etc.
  • Economic policies: Dear money policies, NPA’s have led to severe public investment in sector.
  • FDI and FII: Due to Federal policies of US central banks, flow of FDI has reduced and money is being taken out of country.
  • Data Protection Status: EU is yet to offer India Data secure status which is affecting Indian companies to operate in their soil.

IT is not under threat:

  • Skills: Indian IT sector has competitive advantage over other countries and our jobs are mostly white collared for which the demand still exists.
  • Internal growth: We have huge scope for internal growth like Digital revolution initiatives from government side even though outside growth opportunity is not huge.
  • Automation: It will need more high quality and skilled jobs which our competitor countries might not provide.
  • Visa: H1B visa issue is to prevent flow of unskilled and illegal migrants, it won’t affect our skilled work force much.

What government can do to minimize the risks:

  • Investment: Public investment in software parks and infrastructure will automatically lead to increased job creation.
  • Job creation: Like Digital India, it can offer help to other neighboring countries which will increase our jobs.
  • Diplomacy: With western countries to get certain exemptions from via restrictions on India’s.

Note: 8-10 points are enough in exam. 1-2 lines explanation is needed for all points.


If we take entire IT sector of world, India IT sector occupies what China is at Manufacturing sector today. Due to certain geo-political issues, the sector might be under threat but with proper initiatives and measures we can come out of it with huge success.  

Best Answer: Deena Das

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