Finance and Private Sector Development Unit South Asia Region The World Bank
India and the Knowledge Economy Leveraging Strengths and Opportunities
Carl Dahlman Anuja Utz
WBI Development Studies
The World Bank Washington, D.C.
Currency Equivalents (Exchange Rate Effective April 7, 2005) Currency Unit: Rs. US$1 = Rs. 43.79 Rs. 1 = .0228 US$
Abbreviations and Acronyms
BPO CBFL CSIR FDI GDP HLSG ICT IIT IPR IT KAM KEI MNC NASSCOM NGO OECD R&D REC S&T TFP TRIPS USPTO WTO business process outsourcing computer-based functional literacy Council of Scientific and Industrial Research foreign direct investment gross domestic product High-Level Strategic Group information and communications technology Indian Institutes of Technology intellectual property rights information technology Knowledge Assessment Methodology Knowledge Economy Index multinational corporation National Association of Software and Services Companies nongovernmental organization Organisation for Economic Cooperation and Development research and development regional engineering college science and technology total factor productivity Trade-Related Aspects of Intellectual Property Rights United States Patent and Trademark Office World Trade Organization
INDIA AND THE KNOWLEDGE ECONOMY: LEVERAGING STRENGTHS AND OPPORTUNITIES Overview One of the world’s largest economies, India has made tremendous strides in its economic and social development in the past two decades and is poised to realize even faster growth in the years to come. After growing at about 3.5 percent from the 1950s to the 1970s, India’s economy expanded during the 1980s to reach an annual growth rate of about 5.5 percent at the end of the period. It increased its rate of growth to 6.7 percent between 1992–93 and 1996–97, as a result of the far-reaching reforms embarked on in 1991 and opening up of the economy to more global competition. Its growth dropped to 5.5 percent from...