Analysis On The Development And Propulsive Factors Of The Software Industry In India

With a high illiteracy rate, a low annual per capita income, and one-third of its population living below the poverty line, India seems an unlikely contender in the world. But thanks to a breakthrough in the software industry, the country plays a particular role in the global software market. A lot of people wonders why India become the second largest software export country in the world. I believe this paper gives an answer to the question.The paper is organized as follows:The first chapter describes the development of Indian software industry, which has the unique distinction of being extremely focused on exports. In the second chapter, it argue that the development of Indian software industry is based on the confluence of several factors, including governments' policies and participation, a large pool of talented software manpower, financial assistance for the industry, support of laws and regulations, system of quality guarantee as well as opportunities. The third chapter discusses that the software industry in India shows a high degree of geographical concentration. The software technology parks (STPs), located in Bombay, Bangalore, Delhi, Chennai and Calcutta, are the major centers of software production and export. A case study of the software industry in Bangalore is presented, aiming at analyzing the function of STPs. The analytical framework of this study builds on theories that were developed by several economists. But behind the software industry's success lie a number of problems, which are discussed in the fourth chapter.Conclusions are drawn at the end of the paper. In the development of India's software industry, the Indian government plays a key role, while STPs acts as a catalyst for the development. China's software industry should draw on the experience of India's and seek two important elements: domestic market and software exports performance.