Software Sector: Trends and Constraints

Based on a survey of software-related companies in major cities of India, the authors provide an analytical framework for examining the organisation and size of the Indian software industry. The analysis shows that the Indian software industry lacks diversification in types of export, and relies mainly on software services exports. It also suggests that while there exist significant opportunities for the industry to expand domestically and internationally, the realisation of such expansion depends on major reforms in infrastructure planning and regulatory rules.