Edited by AnnaLee Saxenian

in Economic Policy Reforms and the Indian Economy

Published by University of Chicago Press

Published in print July 2002 | ISBN: 9780226454528
Published online February 2013 | e-ISBN: 9780226454542 | DOI:

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This chapter addresses the growth of the Indian software industry, and provides some contrasts between Bangalore—the center of software in India—and Silicon Valley. India's software industry has grown so rapidly that it evokes frequent comparisons between Bangalore and Silicon Valley. The policy reforms of the 1980s facilitated the emergence of an export-oriented software industry in India. The industry of Indian software as a whole remains significantly less productive than its global competitors. Information technology (IT) presents possible efficiencies in a wide range of private-sector activities, from distribution and marketing to banking to agriculture. The industry association, National Association of Software and Service Companies, has accelerated the policy reform process through its aggressive lobbying while helping to define a minimally interventionist model of industrial promotion. It is noted that Bangalore is not Silicon Valley, and IT is not going to solve all of India's problems.

Keywords: Indian software industry; Bangalore; Silicon Valley; policy reforms; information technology; National Association of Software and Service Companies

Chapter.  19100 words. 

Subjects: International Economics

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