Telecommunications reform and the emerging ''new'' economy: the case of India
by Moazzem Hossain, Rajat Kathuria
World Review of Science, Technology and Sustainable Development (WRSTSD), Vol. 1, No. 2, 2004

Abstract: Telecommunications reform in recent years in almost all developed and developing nations created an opportunity to attract foreign direct investment. The investments have been taking place mainly in the emerging ''new'' economy sector. The main drivers of this sector are information technology (knowledge-based) and telecommunications reform. Among the developing nations, the Indian economy fared better in attracting foreign direct investment in this sector due to the economic reform measures started in 1991. In this paper, the economic and the regulatory reforms brought into the telecommunications sector of India have firstly been addressed. Secondly, the emergence of the ''new'' economy sector has been investigated. Finally, the challenges for India in managing this newly emerged economic opportunity have been discussed. The study concludes that the achievements with the ''new'' economy are not immune from challenges in the future. In particular, future domestic reform policies, interventions by the WTO and competition from East and South East Asia are among the major challenges ahead.

Online publication date: Tue, 12-Oct-2004

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