Did India’s IT industry develop because of industrial policy?

Most of us believe Indian IT industry developed mainly because of absence of government intervention in its initial years. Infact some say government officials were clueless about this industry and as a result there were no policies to ruin the sector.

There is some nice debate on the point between WB econs.  Kalpana Kochhar points how Indian IT industry grew in absence of government intervention. Justin Lin disagrees. He points to a number of ways in which govt. policies  have led to promotion of the software industry.

What do others think on this super topic?

Well, if you look at it there are some similarities with the US story. Most believe US  software industry or Silicon valley is because of power of markets. However, later econs like Rodrik pointed the industry would not have existed without government investment in DARPA etc. So, the debate remains active and acrimonious in US as well..

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: