Enumerate the factors behind the proliferation of the IT industry in India. Also, Explain the reasons behind the skewed concentration of the IT industry within the country.
Main Body
According to world banks, per year -15 million engineering students are graduated from the engineering stream.
Factors behind proliferation of IT Industries in India:
> Economic cheaper workforce is available compared to U.S and European countries.
> Tech Tax benefits in the IT sector and the sale of special economic zones.
> Increased in Internet penetration (eg NITI Aayog) and Telangana (currently 10:1) Given to which person is sitting at least mile san learn coding languages.
> Increase in Workfront home and moon lighting in the IT industry.
> Increase in Tech hubs + Bangalore as all emerging IT hubs + Trickle down effect in nearby Bangalore.
However, certain challenges are also associated with IT leading to skewed concentration:
> lack of forward and backward linkages with other regions.
> Geographical effects like transportation, parts are not uniform throughout the country.
> lack of skilled graduates. 1~3s% of the graduates have actual engineering knowledge (MOEP).
> Skilled labour is not uniform, prevalent across country.
> capital requirement + more than 50% of startups fails after 3-4 years.
Hence, with proper ease of doing business practices, use friendly policies etc, will help in strengthening IT industries in India.
- Comprehensive enumeration of factors
- Addresses both proliferation and concentration aspects
- Use of data (statistics) like 15 million engineers
Saloni Vats
Distribution of Key Natural Resources and Industrial Location
Tertiary Sector Industries - IT Industry
Factors behind IT Industry Growth and Concentration in India
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