IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-50532-2_4.html
   My bibliography  Save this book chapter

Growth of the IT Industry: India and the World

In: India’s Economic Growth

Author

Listed:
  • Jati Sengupta

    (University of California)

Abstract

The information technology (IT) sector in an economy has many dimensions, each of which influences the growth process significantly. First, it brings in a new era of industrial revolution through its impact both locally and globally. This impact is generated through innovations in software technology and data processing capabilities. Managerial skills and work performance in plants get a tremendous boost. Second, the key component of the IT system is knowledge capital and organizational knowhow, which are always complementary to other inputs. This complementarity generates spillover effects in other industries using IT services. Third, the IT input is not subject to diminishing returns, so that its growth contributions need not decline over time, i.e., it has a steady state growth effect rather than a level effect. Finally, the investment in IT input through R&D and related expenditures helps improve the efficiency of the IT sector itself and this efficiency spreads to other manufacturing, processing, distribution and service sectors through learning by doing, externalities and forward linkages to other sectors.

Suggested Citation

  • Jati Sengupta, 2005. "Growth of the IT Industry: India and the World," Palgrave Macmillan Books, in: India’s Economic Growth, chapter 4, pages 97-129, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50532-2_4
    DOI: 10.1057/9780230505322_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-50532-2_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.