Article Details

An Analysis upon Performance of Information Technology Industry: A Research in Indian Context | Original Article

Rajan Bedi*, in International Journal of Information Technology and Management | IT & Management


“Information Technology (IT) is an important emerging sector of the Indian Economy. This paper examines the India’s IT industry and also studied the impact of IT on the Indian Economy. The IT sector has served as a fertile ground for the growth of a new entrepreneurial class with innovative corporate practices and has been instrumental in reversing the brain drain, raising India’s brand equity and attracting foreign direct investment (FDI) leading to other associated benefits. The Size of this sector has increased at a tremendous rate of 35% per year during the last 10 years. Its contribution to the national gross domestic product is expected to be around 8.5 by the year 2010-11, quite similar to that in the United States today. Special subsidies or export incentives are likely to be inefficient ways of stimulating the growth of the IT sector, or of positive spillovers for the rest of the economy. The same stricture applies, to some extent, to State government policies to encourage the IT sector. Information technology (IT) is an example of a general purpose technology that has the potential to play an important role in economic growth, as well as other dimensions of economic and social development. This paper reviews several interrelated aspects of the role of information technology in the evolution of India’s economy. It considers the unexpected success of India’s software export sector and the spillovers of this success into various IT enabled services, attempts to make IT and its benefits available to India’s rural masses, e-commerce for the country’s growing middle class, the use and impacts of IT in India’s manufacturing sector, and various forms of e-governance, including internal systems as well as citizen interfaces.