The point of this posting was show that the IT industry (for India this is
a boom industry--over 4% of GDP is IT and about 25% of India's exports of
goods and services are software or IT exports. If you tell me this didn't
lead to Indian growth I have to disagree. The point is that it did grow but
spread the benefits unevenly since few people are needed by the sector (the
revenues per employee is high though much lower than the US or Israel).
Roughly 2.5 million are employed by the Indian IT industry, it's less than
1% of India's workforce. However, the gains from the industry is
disproportionately secured by the IT professionals, the entrepreneurs, etc.
Consequently, cities like Bangalore are being barricaded in and people with
average and low incomes excluded from the real estate boom. There are poor
people in Bangalore, who are being pushed out because of rising land
prices. Old shacks are making way for fancy apartment buildings and further
out of the city California style houses abound. It's an Indian version of
exclusionary development. Incidentally, most Indian IT workers are
engineers not high school graduates or non-STEM candidates. This is another
reason why India continues to hold onto the outsourcing markets--better
educated and cheaper, although the salary gap is narrowing. My college
friends in Seattle hire Romanians, Indians are too damn expensive!

Cheers, Anthony

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Anthony P. D'Costa, Chair & Professor of Contemporary Indian Studies
 Australia India Institute and School of Social & Political Sciences
University of Melbourne
147-149 Barry Street, Carlton VIC 3053
Ph: +61 3 9035 6161

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On Thu, Aug 1, 2013 at 2:33 AM, <[email protected]> wrote:

> * *"Anthony D'Costa" <[email protected]> wrote:
>
> > I have written one piece that deals with this sort of Saskia's theme.
> > Geography, uneven development and distributive justice:
> > the political economy of IT growth in India
>
> *> Anthony P. D'Costa*
>
> *> Cambridge Journal of Regions, Economy and 
> Society<http://econpapers.repec.org/article/oupcjrecs/>
> *, 2011, vol. 4, issue 2, pages 237-251
>
> I found it at
> http://cjres.oxfordjournals.org/content/4/2/237.full
>
> IT by itself doesn't result in much economic growth -- IT has to be usable
> in providing goods and services.
>
> The other problem is that IT is concerned with processing data, not
> knowledge. Knowledge processing requires effort
> in the sciences, engineering, linguistics, and mathematics.
>
> --
>     Ron
>
>
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