Abstract
This paper discusses some aspects of industrial development in India since the 1990s, particularly focusing on the knowledge economy in the context of the global economy. India has been pursuing an economic policy different from that of most of East Asian economies and did not get into a business wave on globalisation until the mid-1990s. As is well known, the share of manufacturing to total GDP has been stagnant at 15-16 per cent during Indias period of high growth since the 1980s. On the other hand, the service (tertiary) sector exceeded 50 per cent of its total GDP. The software and ICT-enabled service (ICTES) sectors are the sectors which are fast growing, earning a large trade surplus and employing more than one million people. One issue this paper is focusing on is the low level of Research & Development expenditure in India. Recently, more and more multinational companies have been entering into various business areas in India and building Research & Development centres there, which is putting Indian firms into more competitive circumstances.
