The Role of Development Policy in the Creation of the Country's Future - the Case of India

Abstract

The purpose of this paper is to analyze the path of the poor and backward country's, which India was at the time of regaining independence in 1947, ascent to its current position of the world leader in the modern sector of IT-BPM services offshoring. The paper presents the origins of the IT-BPM sector in India at the background of both the evolution of India's development policy and the changing external conditions. Author discusses the generał conditions of the economic development of India since that nation's independence in 1947 as well as the state policy towards the information technology industry, with particular emphasis placed on the reforms undertaken by R. Gandhi in the 1980s. He also focuses on the particularly beneficial solutions for the sector of modern IT and business services applied since 1991 within the framework of reforms aimed at economic liberalization. Separate sub-periods were identified in the Indian economic policy reflecting the changing conditions of the development of IT- BPO sector in the country. The analysis confirms that the achievement of India's position as the world leader in IT-BPO services offshoring was a result of the country's development policy, one that skillfully used both the country's endogenous potential and the opportunities arising thanks to the IT revolution and globalization.(original abstract)