Information Technology and its Role in India’s Development: Exploring the Impact of Information Technology on India's Economic Growth

Abstract

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 Development. The IT sector, constituted by the software and services, Information Technology Enabled Services (ITES) and the hardware segments, has been on a gradual growth trajectory with a steady rise in revenues as witnessed in the past few years. The size of this sector has increased at a rate of 35% per year during the last10 years. The share of information technology industry is 7 percent of gross domestic product (GDP) in Indian economy according to NASSCOM (www.imdr.edu; www.nasscom.org).