Retrospects and Prospects of Information Technology Sector in India
by
R. K. Grover
CCS HAU, Hisar
Coauthors: K.N. Rai

The role of Information Technology (IT) as an instrument for progress and development has been widely acknowledged. It is expected to bring major social and economic benefits for the mankind and accelerate the process of development. Through this paper, an attempt has been made to study the growth of IT industry in India. Indian software exports have grown from Rs. 230 crores in 1991 to Rs. 23,000 crores in 2000, which is a hundred times increases in ten years and it is targeted to touch Rs. 230,000 crores by 2008. Internet cuts costs, increases competition, reduces the barriers to entry and improves the price mechanism, thus moving the economy towards a typical model of perfect competition. This has been illustrated by using standard aggregate demand and aggregate supply model. Under the WTO Information Technology Agreement, protection to IT industry will vanish by 2005. So, to compete with the global players, huge investments in hardware sector both for IT and telecommunications are required. The future is extremely promising for the Indian IT industry provided simultaneous

Date received: September 16, 2001