Information and Communication Technology (ICT) in India: A reality check

Abstract

This chapter reviews the role of the IT sector in the context of the Indian economy. Three specific issues are delved into in particular, viz., the definition of this sector, the contribution of this sector to the Indian economy and the policy regime behind the growth of this sector. While concluding that the nature of IT embodying a ‘general purpose technology’ is leading to significant fall in costs of computing, the chapter finds that there could be elements of overestimation in the perception on the contribution of IT in India, in popular and industry association circles. Furthermore, while most (if not all) of the development of the IT sector has happened in the private sector, to ascribe the whole success to the private sector would be erroneous. Along with private sector initiatives and the establishment of an effective industry body like NASSCOM, general R&D initiatives and pursuit of an active human capital formation strategy via establishment science and technology institutions/engineering colleges (both primarily under government auspices) and various import and fiscal incentives have all played their role in the success story of IT in India. © 2019 selection and editorial matter, Indian Institute of Management Calcutta; individual chapters, the contributors.