Technology Development in India : An Evaluation

Abstract

Technology is a key driver o f econ om ic
growth. Its role in the growth process has
attracted a great deal o f attention in the
literatu re. A lth o u g h ' co u n tries m ay
achieve a higher standard o f living e.g.,
th ro u g h a h ig h e r r a te o f c a p it a l
accum ulation, hut they will not be a b le to
enjoy continuously high econom ic growth
w ith ou t te c h n o lo g ic a l d e v e lo p m e n t
progress. The present pap er attem pts to
exam ine the various p hases o f technological development in India since
independence. The pap er reveals that
India h a d relied on the policy o f im port
substitution fo r a long period. As a result,
India's econom y grew slowly fo r m any
years. The pap er also exam ines the crucial
role o f foreign direct investment (FDI) as a
channel to gain access to technology
developed abroad. It is observed that FDI
has been widely recognized as - a key
modality fo r the acquisition o f
so p h istica ted la test tech n o lo g ies by
developin g nations. It also h elp s to
increase the productive capacity o f the
economy. Although governm ent o f India
has brought a paradigm shift in the FDI
policy since 1991 still m ore efforts are
req u ired to e n c o u r a g e th e fo r e ig n
investors.