CONCLUSION
The main emphasis of this paper has been to stress that IT has some special characteristics,
both in theory and practice, which make it a promising engine of broad based growth in
India. Special subsidies or export incentives are likely to be inefficient ways of stimulating
the growth of the IT sector, or of positive spillovers for the rest of the economy. Similarly,
special central government initiatives to increase the availability of IT training and related
education are also likely to represent a mistargeting of scarce government resources. The
same stricture applies, to some extent, to State government policies to encourage the IT
sector. State governments also may be better off removing general restrictions to doing
business, as well as providing an enabling institutional infrastructure (appropriate laws and
regulations), rather than attempting to target the IT sector through a form of industrial policy.