Comparative study on the effect of policy changes and other factors on the growth of IT sector in India

Abstract

India has witnessed a strong and steady economic growth over the past two decades. One of the major factors that initiated the phase of rapid development is the liberalisation effected by the Indian Government's policy changes during the early 90s. The IT sector which has grown more than 30 per cent continuously over the last decade is in the forefront of such a remarkable development during this period. Karnataka and Tamil Nadu, two of the country’s most industrialized states have been the leaders in the IT segment. The growth in these states can be attributed to a variety of causes including Government policies, educational infrastructure and other favourable factors. Karnataka was in the forefront of enacting IT policies closely followed by Tamil Nadu. But over the last few years, Tamil Nadu is attracting more investments than Karnataka and is threatening to steal the lime light away from the state. The study is aimed at analysing the factors that contributed to the growth of the IT sector over the years in these states and the changes that have happened over the years that has contributed to the shifts in the IT industry.