ISSN (Online) - 2349-8846
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State and the IT Industry in India

An Overview

Keshab Das ( is with the Gujarat Institute of Development Research, Ahmedabad. Hastimal Sagara (hastimalsagara@ teaches at the GLS University, Ahmedabad.

Using a historical comparative perspective, this paper assesses the role of state (both national and subnational) in the growth of the information technology industry. An attempt has been made to identify the key constraints facing the information technology sector in a highly competitive global market scenario. There have been, however, serious lapses in government policy that never prepared the sector to engage in hardware manufacturing, and India still stands at the low end of the value chain. An interesting development in the sector has been the distinctive role played by a few proactive subnational governments that have recognised the emerging opportunities this sector can provide through participation in both the global as well as growing domestic markets.

Earlier versions of this paper were presented at conferences organised by the Indian Institute of Foreign Trade, New Delhi; Asian Society for Innovation and Policy, Chengdu, China; and Punjabi University, Patiala. Special thanks are due to Richard Heeks, Vinoj Abraham, Mukesh Bhatnagar, Rupa Chanda, Pralok Gupta, Yoo-Soo Hong, Murali Kallummal, Upinder Sawhney, Sung-Soo Seol and Lakhwinder Singh for their valuable inputs.


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