Question

Software
The continuing growth in the hardware and
is the key to the secess of
Sorsformalias
industry in the
country.
Tehnology​

Answer 1

India’s software exports success has been offset by rising hardware imports. The inability to develop a domestic hardware base, amidst rising demand, will impact the BoP

An often remarked upon feature of India’s growth is the premature diversification of aggregate production in favour of services at a relatively low level of per capita income. But the fact that services account for more than half of the country’s GDP and around 60 per cent of the increment in GDP is not seen as a cause for concern. Rather, the still small share of manufacturing and large share of services, is often presented as evidence of India’s pursuit of an alternative development strategy attuned to contemporary times where services dominate the economy.

One reason for this complacence is India’s indisputable success as a software services exporter. But what is missed in this assessment is that despite the objective of becoming self-reliant in small and micro-computers set by the Homi Bhabha Committee in 1963, India’s performance as a hardware producer has been dismal. The result has been lopsided growth in software accompanied by stagnation in hardware.

Answer:

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