Growth of Computer Software Industry in India

INDIA'S drive for technological modernisation has led the economic planners and technocrats to place high priority on the development of the electronics industry. At the forefront of technological modernisation, the electronics industry in India has rapidly expanded, with the computer software sector playing an important part in the promotion of exports. Indian software producers confidently informed their US counterparts at a recent conference that "India" is poised to become to software in the nineties what Taiwan and Korea are to hardware today".1 India's rising international stature in high technology was confirmed when West Germany accorded it partner status for the Hannover Fair, Ce Bit 1989, which provided a showcase for the most up to date developments in telecommunications and computerisation.2 Ambitious plans to boost software exports in the future are matched with some promising achievements by software producers. In promoting software exports, India enjoys certain key advantages giving it an edge over many other nations. Human resources are the chief asset of the industry. Indian computer personnel is capable, well qualified, possesses a good command of the English language, and relatively low paid. How far India capitalises on its comparative advantage remains to be seen. Nevertheless, the present buoyant state of the software sector, combined with the important status it occupies within the electronics industry, demands serious attention. This paper therefore examines some essential features of the software sector such as government policy, the growth of software exports, human resources, and markets and foreign collaboration. The discussion highlights certain constraints confronting the industry in the bid to expand its share of the international market. Unless the limitations are overcome, India will be confined to a minor status within the global computer software industry.