Impact of Information Technology Industry on Indian Economy Since 1991

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: This research paper examines an impact of IT industry on economic situation of India since 1991. The major goal of this work is to study previous researches dedicated to this topic, collect and analyze the necessary data related to this subject and, finally, find out the extent of IT influence on overall modern Indian economic situation and its position among other developed and developing economies. It is a well known fact that India is a leading provider of up-to-date software solutions and BPO services, but the purpose of this study is to support this statement with some empirical evidences. This paper is focused on the impact of software manufacturing and software-related service distribution. All types of call centers, data transcription services, data entry outsourcing activities, etc. that are all parts of BPO will not be considered. The center of attention in this research is software manufacturing activities and software development services only. Software outsourcing is counted as a part of software development services, so this economic concept is an element of this study. The following measures of impact are selected: fraction of IT industry revenue from total Indian Gross Domestic Product (GDP), changes in industry’s human capital, and comparison of industry’s export numbers with other economic sectors.

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