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State and the IT Industry in India: A Policy Critique

Keshab Das and Hastimal Sagara
Gujarat Institute of Development Research Working Paper No. 232, March 2016
By adopting a historical comparative perspective, this paper assesses the role of state (both national and subnational) in industrialisation through the growth and policy experience of an ‘achieving’ sector, the information technology (IT) industry. An attempt has been made to identify key constraints facing the IT sector in a highly competitive global market scenario.  The state had created (and continues to do so) an enabling platform by building up a world-class infrastructure base of learning, education, training and networking. This, subsequently, contributed immensely towards India enjoying a dominant position globally. There have been, however, serious lapses in policy that never prepared the sector to engage in hardware manufacturing and India still stands at a lower stratum of the value chain. An interesting development in the sector has been the distinctive role played by a few proactive subnational governments that recognised the emerging opportunities this sector could provide through participation in both the global as well as growing domestic markets.
Courtesy: GIDR
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