The software industry and development: the case of India

Abstract

Software and globalization provide both opportunities and challenges to developing countries. Whether these opportunities are successfully utilized depends upon the availability of infrastructure and educational skills, a conclusion arrived at by many development debates over the past few decades. We will consider the impact of the software industry on development, drawing on the case of India. We show that in India, a number of factors have come together to contribute to the success of this industry, in spite of relatively poor infrastructure and education levels. In this case, however, the inadequacy of infrastructure and education have manifested themselves in an uneven spread of the benefits of this industry, leading to enclave-type development in urban centres in the southern and western parts of the country. While this is improving, the government has to take an active role to ensure a more even spread of the benefits accruing from this industry.