TECHNOLOGICAL ENVIRONMENT IN

INDIA

An Assignment
Submitted to
Prof. Gunmala Suri

On January 9, 2015

Submitted By:
Mehak Gupta
MBA IB 3rd Semester
Roll Number: 21

TECHNOLOGICAL ENVIRONMENT IN INDIA

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TECHNOLOGICAL ENVIRONMENT IN INDIA

The success or failure of any business is highly dependent on the type of technology in use,
the level of technological developments, the speed with which new technologies are adopted
and diffused, the type of technology that are appropriate etc.
For many years in the past, India did not have a favorable attitude towards latest technology
to meet foreign standards. The overemphasis on indigenous technology had led to high costs
and distorted developments. Further the reservation of certain products exclusively for the
small-scale sector promoted several companies including multinationals to resort to such
strategies as franchising and contract manufacturing in some of these industries in India. The
reservation of products for the small scale sector sometimes comes in the way of adoption of
modern technology if it involves capital investment higher than the specified limit.
It is only after the introduction of liberalization and globalization of Indian economy drastic
changes have come in the technological standards in India. Prior to the introduction of this
policy, funds for imports were also not easily provided. Foreign collaborations and joint
ventures were not freely allowed. All these restrictions led unfavorable technological
environment in India and lack of good business opportunities. Also very high duty structure
made the import of latest technology not only expensive but also almost impossible.
Status of Technological Environment or Technology in India
After Independence, India had basic problems like poverty, unemployment and development
of India . Indian Govt. has taken many following steps for technological development.
1. Establishment of technological and research institute Indian govt. has established 500
technological institutes for providing education to Indian students. It has also established
1080 research institutes. In these institutes major names like space research centre, medical
research centre and agricultural research centre have developed India technically.
2. Positive Technical policy India has strong and positive technical policy for technological
development. This policy opens door to import technology from foreign countries for
increasing agricultural and industrial developments.
3. High Growth Rate of Information Technology in India In India, IT sector is developing
with 35% growth rate, India is second country after China who is using internet at large scale
for e-commerce, e-education and e-accounting.

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4. Incentive for promoting Technology in India

Indian Govt. has given 100% income tax exemption for expenses incurred in research of
technology in India.
State financial corporation is uplifting domestic technology by supporting finance to
domestic Industries
Today, the scenario has changed. Free availability of foreign exchange, welcoming foreign
collaborations, FDI, JVs, and setting up of MNCs have led to development of various R & D
centers in many firms. Even the development taken place in the infrastructure has also
facilitated the technological development.
The current Indian technological development is the outcome of:

Technological collaboration

Joint Ventures

Licensing

Merger & Acquisition

Increased exports

Liberalized imports of foreign made new /second handed machineries

Liberalized imports

Characteristics of Indian technological environment

India attained political independence after prolonged colonial rule and exploitation. The
country entered the modern world in a state of economic backwardness and poverty of a large
section of its people. It is obvious that technology must attend to the basic problems of food,
clothing health and housing of people. At the same time, rapid industrial development
through latest technology is necessary to catch up with the advanced countries.

Very lately the country accepted the importance of technological environment

Imports were liberalized

Many Indian industries could be modernized

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Improvement in quality in Indian products

Development of the IT industry in India.

IT exports by the end of the year 2003 were around 26,000 crs.
IT industry is growing at the rate of around 35-40% every year.
This industry is contributing around 17% of Indias total exports.
Technological environment in India should be favourable to quality improvement, cost be
favourable to quality improvement, cost reduction, & introduction to new products reduction,
& introduction to new products in market. It should also lead to Industrial development with
global competitiveness development with global competitiveness.
In India, the government has setup large in India, the government has setup large number of
R & D Activities, space research number of R & D Activities, space research centres etc. for
introduction of new centres etc. for introduction of new technology in different areas.
According to Livemint, Technology executives worldwide believe that the US, China and
India are the top three countries with the potential to drive technology breakthroughs that will
have a global impact in the next four years, according to the 2013 Global Technology
Innovation survey released by consultancy firm KPMG Llp on Thursday. The US and China
had tied for the top spot in the 2012 survey. However, this year, 37% of the respondents said
the US shows the most promise for disruptive breakthroughs, while China ranked second
with 24%, and India came third with 10%, followed by South Korea (7%), Japan (6%) and
Israel (6%). Moreover, India ranked second in becoming the leading innovation centre for the
world, third in the list of the most promising countries for disruptive breakthrough and
fourth-most friendliest technology innovation country. In the April-June quarter, KPMG
surveyed 811 business executives from organizations focused on the technology space. Of
these, 34% were in the Americas, 37% in Asia Pacific and 30% in Europe, Middle East and
Africa. The index is based on tech leaders in each market rating their country on 10 success
factors including talent, infrastructure, incentives and capital.

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REFERENCES
Staff Writer, Jul 18 2013, India among top 3 countries in KPMG technology innovation
survey available online at
http://www.livemint.com/Industry/r6N1pw1LVz1D8fYDUcWBDL/India-among-top3-in-KPMG-technology-innovation-survey.html
Online Website www.bms.co.in
Online Blog available at http://business.svtuition.org/2009/11/what-is-technologicalenvironment-and.html
Online website http://www.innovativeindiatechnology.com

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