Information technology (IT) and internet can enable india to "leapfrogover the development path taken by industrial nations, accelerate growth andcatch up with them provided reforms move faster and infrastructure problems areovercome," top US economists have said.
For Indian firms, opportunities to expand business ties with foreign firmscould be enhanced through the internet, even though its use has remainedrelatively constrained, Guy Pfeffermann, director of the economic department andeconomic adviser of the International Finance Corporation (IFC) and Robert R.Miller, an IFC consultant and author of a paper on the subject said.
One rapidly expanding business for Indian companies, they note, is theprovision of back-office services to international clients. The task involves awide number of industries, including, airlines, banks, insurance companies andmedical establishments.
Currently, India employs between 50,000 and 100,000 people in what are termed"internet-enabled services," producing $500 million in exportearnings. Growth has been so rapid in this segment that experts anticipateemployment of well over one million within ten years, generating income of $10billion.
According to the paper, venture capital in Indian high-technology firms hasincreased steadily year after year-from 20 million dollars in 1996 to 750million dollars in 2000, Reliance Industries gets special mention amongcompanies and institutions which have realized the value of the newcommunications technologies.
Also lauded are India's Housing Development Finance Corporation (HDFC) andICICI.
