Information Technology and India's Economic Development
UC Santa Cruz Economics Working Paper No. 523
32 Pages Posted: 20 Feb 2003
Date Written: July 2002
This paper discusses the possibilities for broad-based IT-led economic growth in India, including increasing value-added, using better telecom links to capture more benefits domestically through offshore development for developed country firms, greater spillovers to the local economy, broadening the IT industry with production of telecom access devices, improving the functioning of the economy through a more extensive and denser communications network, and improving governance. We also examine the policy environment, arguing that government policy is better focused on removing labor market distortions and infrastructure constraints, rather than providing output or export subsidies to the software industry.
Keywords: information technology, software, complementarities, telecommunications
JEL Classification: M21, L63, O12, O3
Suggested Citation: Suggested Citation