Abstract
This paper explores the role of government in the exponential growth of India’s software industry. Study of secondary sources and interviews with industry leaders, academics, and government officials in India during June-July and November-December 2001 show that despite wide spread skepticism about politics and governance in India, some government policies and actions have made critical contributions to the growth of the industry. The government has played a critical supportive role, though often not proactive or even intentional, in the late 1980s and early 1990s in setting up Software Technology Parks that offer low-cost entry to software companies in the form of infrastructure; liberalizing markets and encouraging integration with world markets; and in developing human capital, which is a key factor of production for the industry. These findings, which might be of interest to countries that intend to exploit the global potential of the software market, suggest that governments need not drive or subsidize software industry; a supportive or even hands-off approach may be sufficient for the industry to flourish.
Recommended Citation
Pillai, Brojo and Raman, K S., "Role of Government in the Growth of India’s Software Industry" (2002). PACIS 2002 Proceedings. 95.
https://aisel.aisnet.org/pacis2002/95