Structure and Growth of India's IT Exports

The policy initiatives taken to develop the information technology sector in India have yielded rich dividends in terms of exports and established the country's credibility in international IT markets. However, the focus has mainly been to promote IT as a foreign exchange earner. This paper looks at India's performance in software exports, the implications of this boom on the availability of skilled manpower in other competing sectors, and the possible threats to the sustained growth of software exports. To combat some of the negative offshoots of the current export-centric IT scenario, the authors say a proper incentive structure needs to be looked at, and the supply of technically skilled personnel enhanced. Most important of all, the diffusion of IT into other areas of the economy should be accelerated to help in the sustained growth of the sector.