From Produce and Protect to Promoting Private Industry: The Indian State’s Role in Creating a Domestic Software Industry

Abstract

The software industry is one of the hallmarks of the Indian growth story. It is a key contributor to the country’s economy, and has remained robust despite laggardness in other sectors. Initially, India’s electronics policy followed the standard “license raj” procedures which empowered state enterprises over private industry. As with other sectors, the protectionist, statist policies hampered the growth of the industry. However, radical changes came about in 1984. The newly elected Prime Minister, Rajiv Gandhi, was quite a westernized man who took a keen interest in reforms. Computer policy, consequently, went from a protectionist, statist establishment to a private sector oriented model. Industries related to computing also saw government promotion. While many claim that the software industry boomed due to a lack of government involvement, the government’s private sector promotion policy played a critical role in setting up one of India’s most successful industries.

Details

Author(s):
Publish Date:
December, 2019
Format:
Working Paper
Citation(s):
  • Dinsha Mistree, From Produce and Protect to Promoting Private Industry: The Indian State’s Role in Creating a Domestic Software Industry, December 2019.

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