Political Economy and Information Capitalism in India: by Govindan Parayil (eds.)

By Govindan Parayil (eds.)

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Extra resources for Political Economy and Information Capitalism in India: Digital Divide, Development and Equity

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What is missing from the basket of software exports is software products or packages. 2 There is no comparable figure for India, suggesting a negligible presence in this market niche. The closest India comes to products is installing and integrating ‘packaged software’ created by multinational firms. Such exports from India were estimated to be worth only about $350 million (NASSCOM, 2002). The fourth form of decoupling is illustrated by India’s exclusion from the Japanese market. While Japan’s market size relative to the US and the European Union is small, its absolute size is nearly $35 billion.

Since highly trained people tend to move to locations offering better economic and professional opportunities, it is imperative that the brain drain problem be turned to India’s advantage by gaining the brain it has already lost and retaining talent at home. This will be critical to firm-level innovation strategies and India’s repositioning in the international division of labour. The trajectory of the Indian ICT industry suggests that development stages cannot be skipped in a routine sense but they can be compressed, as the East Asian cases demonstrate.

397) In every context, at each point in time, firms and institutions choose to determine the boundaries of their own operation by selecting the parts of their overall activity (say a fully fledged production, marketing and sales operation) they want to undertake in-house and those which they prefer to leave to other firms or institutions. This would determine the degree of vertical integration in production and the degree of involvement in activities other than production, such as accounting, computerisation, marketing and consumer relationship management.

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