India is in a global sweet spot. It is now the world’s most populous country — home to more than 1.4 billion people—and has had robust economic growth for the past three decades, with GDP per capita having risen by 245%. And yet, it remains relatively underdeveloped on a global scale. As of 2019, more than 600 million people in India live on less than $3.65/day. Thus there remains enormous potential for economic growth, and improvements in human welfare. And as the United States’ concerns about China grow, India shines as a promising alternative in supply chains, innovation hubs, and joint-ventures. As the world’s largest democracy with an increasingly open economy and a strong technology sector, it has the potential to operate at scale.
The U.S.–India Relationship Is Key to the Future of Tech
As tensions mount between China and the U.S., India’s role in global innovation — and who it partners with — becomes increasingly important.
April 17, 2023
Andriy Onufriyenko/Getty Images
Summary.
As the U.S. becomes more concerned about China, its relationship with India will become more important. This is particularly true in terms of technology. Both countries need to invest in creating a technology corridor between the two countries. That means removing trade barriers, but it also means a mindset shift for U.S. companies. They need to think of India not just as a source of labor arbitrage, but as a true innovation partner.
New!
HBR Learning
Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.
Learn More & See All Courses
New!
HBR Learning
HBR Learning
Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.