Characteristics of Indian technological environment:
India attained political independence after prolonged colonial rule and exploitation. The country entered the modern world in a state of economic backwardness and poverty of a large section of its people. It is obvious that technology must attend to the basic problems of food, clothing health and housing of people. At the same time, rapid industrial development through latest technology is necessary to catch up with the advanced countries.
ØVery lately the country accepted the importance of technological environment,
ØImports were liberalized
ØMany Indian industries could be modernized
ØImprovement in quality in Indian products
ØDevelopment of the IT industry in India.
IT exports by the end of the year 2003 were around 26,000 crs.
IT industry is growing at the rate of around 35-40% every year.
This industry is contributing around 17% of India’s total exports.
After the introduction of liberalization and globalization of Indian economy drastic changes have come in the technological standards in India. Prior to the introduction of this policy, funds for imports were not easily provided. Foreign collaborations and joint ventures were not freely allowed. All these restrictions led unfavorable technological environment in India and lack of good business opportunities. Also very high duty structure made the import of latest technology not only expensive but also almost impossible.
Today, the scenario has changed. Free availability of foreign exchange, welcoming foreign collaborations, FDI, JVs, and setting up of MNCs have led to development of various R & D centers in many firms. Even the development taken place in the infrastructure has also facilitated the technological development.
Thus, in short we can conclude the introduction by stating that development in technological environment in India is the outcome of:
- Technological collaboration
- Joint ventures
- Licensing
- Merger and acquisition
- Liberalized imports
- Liberalized imports of foreign made new / second hand machineries
- Increased exports
The technological environment should be favorable to quality improvement, should lead to reduction in cost, and introduction of new products in the market.
One Comment