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STRUCTURE AND GROWTH OF INDIA’S IT EXPORTS (2) | Business Cycle | Exports

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IT sector India - summary of a paper
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  STRUCTURE AND GROWTH OF INDIA’S IT EXPORTS IMPLICATIONS OF AN EXPORT ORIENTED GROWTH STRATEGY  ã In this era of IT revolution India enjoys comparative advantage in IT service exports.This paper attempts to answer 3 questions ã how to characterise the recent growth performance of IT service exports(in the light of government initiatives) ã Implications of IT sector boom on other sectors competing for skilled manpower ã Are there any threats to sustained growth of IT exports.  STATE INITIATIVES ã Till mid 1980s there wasn’t any specific policy towards software development; its cost share of total cost of computer was negligible ã software wasn’t considered as a product amenable to trade ã Computer policy of 1984 for first time recognized the importance of software development; provided for setting up of separate Software Development Promotion Agency (SDPA) under the department of electronics (DoE)  ã One notable institutional intervention has been the establishment of software technology parks(STP) to provide the necessary infrastructure for software export. ã infrastructure facilities available in these STPs include, modern computers and communication networks which are beyond the reach of individual firms. ã In June 2000, an STP was set up in Silicon Valley comprising a business support centre and an India InfoTech centre, with a view to facilitate software export by small and medium firms to the US.

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