Title: Growth of new technology-based industries in India, the contrasting experiences of Biotechnology and Information Technology industries

Authors: Sunil Mani

Addresses: Centre for Development Studies, Prasantha Nagar Road, Ulloor, Trivandrum 695011, Kerala, India

Abstract: IT and BT are slowly but steadily emerging as important contributors to India|s GDP and hence economic growth. The industries are concentrated only in a narrow geographic region and employ only a small number of highly skilled personnel. There is a feeling that the growth of these industries is also spawning increased brain drain from the country, although the evidence on this issue is not very clear-cut. The most important and distinguishing aspect of these two industries is that their production is largely in the private sector while the government intervention has been to provide an enabling environment. The two industries thus present an ideal model worthy of emulation by other industries. However, given the small size of these industries, they do not have a pronounced role in poverty reduction. But the outputs of both these industries go a long way towards reducing the negative effects of income inequalities that are so characteristic of India|s post-liberalised economy.

Keywords: new technology-based industries; India; information technology; biotechnology; software exports; biopharmaceuticals; brain drain; economic growth; income inequality; poverty reduction; developing countries.

DOI: 10.1504/IJTG.2006.009134

International Journal of Technology and Globalisation, 2006 Vol.2 No.1/2, pp.200 - 216

Published online: 03 Mar 2006 *

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