Trends Report

How Can India Boost Its Tech Economy's Global Competitiveness?

October 6th, 2008
With contributors:
Jean-Pierre Garbani , Edward Radcliffe


The Indian IT industry is losing its international competitiveness; it dropped from 46th to 48th in The Economist's global IT industry competitiveness index 2008. India's worrying demotion is due to its dismal IT infrastructure, acute talent shortage, and unproductive R&D environment. To boost its tech economy's global competitiveness, the Indian government must shift its policy emphasis from supply-side variables like R&D spending to strengthening the demand side of the tech sector in order to stimulate widespread IT usage. How? By investing more in human capital, bolstering the use of technology in rural areas and public agencies, and amplifying industry-academy cooperation. Indian tech vendors like Infosys, TCS, and Wipro must also play their part by addressing "Corporate India's" growing IT innovation appetite and tackling India's deepening tech talent shortage.

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