Plugging into Global Value Chains of the Software Industry: The Experiences of India

Shaopeng Huang, Jai Asundi and Yuqing Xing
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Shaopeng Huang: Research Institute for Global Value Chains, University of International Business and Economics, Beijing, China
Jai Asundi: Center for Study of Science, Technology and Policy (CSTEP), Bengaluru, India

No 21-04, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: The rise of the software service industry has been the most impressive achievements of the Indian economy in the last few decades. The success story of Indian software service industry is essentially a story of plugging into the GVC by taking up part of the mostly labour-intensive, low value-added tasks outsourced /offshored by lead firms from the developed country. With a view to expand our understanding of GVCs beyond manufacturing, we analyse in this paper the software services industry in India in the context of GVCs. By examining the organization of software value chains, the endowment profile and sources of comparative advantage of India, the relations between foreign (lead) firms and indigenous firm, and the role of Indian governments, this paper try to pin down India’s particular position in the global value chains and its upgrading status, and to demonstrate the structural barriers and future challenges if Indian firms are to upgrade further their positon in the GVC.

Keywords: GVCs, software; Indian software industry, upgrading (search for similar items in EconPapers)
Pages: 29 pages
Date: 2021-10
New Economics Papers: this item is included in nep-cwa, nep-int and nep-tid
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