How Does IT Impact Various Industry Sectors?

IT is an example of an all-encompassing technology that could play a major role in economic growth and also in other aspects of economic and social change. This paper discusses many interconnected facets of the importance of IT in the economy of India. It takes into account Indians' unprecedented success in exporting software and the spill overs that this success spreads through different IT-enabled services. 

It attempts to make IT and its advantages available for the rural masses of India. It also considers that eCommerce has become a part of the growing middle class, IT use, and impact in India's manufacturing sector. In the framework of the Indian economy, the paper ends with a general evaluation of these various IT facets.

In growth and progress, IT may play a special role precisely because of the analytical features currently applicable. More specifically, the recent and steady speedy innovation in IT makes it an appealing candidate for development alone after Japanese car manufacturers attacked the car industry after the Second World War. 

On the other side, IT features will make it theoretically appealing for economic development. For instance, IT may be one of the sectors that are competitive advantages for countries such as India.

Even if so, IT would probably share this feature with some other industries. One more special feature of information technology is that it is common to use technology,' which is characterized by a broad range of applications, technical dynamism, and innovative complementarities (GPT, Bresnahan and Trajtenberg, 1995). 

IT is one of the few special developments in this situation, with steam and electricity (both innovations in power supply systems) and synthetic materials being other examples of GPTs. Finally, the effect of IT on development may be peculiar.

IT has a particular role to play in the invention process because it influences the pace of transformation of possible novel innovations to the useful stock of information in ways that can be used for nothing else. This unique function is formalized in accordance with the recombinant growth model.

Experiences with IT in developing countries, especially in the US, indicate that exchanges of information related to business purchases are particularly useful. The possibility to more efficiently get buyers and sellers together in digital IT-based communications (combined with storage and processing) represents significant potential benefits. This profit can be achieved by lower quest prices, better matching between buyers and sellers, and even new markets.

These gains are shown by the achievements of auction web pages and jobs in the USA. In the rural Indian background farmers who sell and purchase inputs are both possible consumers of internet matching services and parents search for matrimonial alliances for their daughters. 

Weather forecasting, market price quotations, guidance on farming activities, and specific training can be given to farmers and fishermen. In addition, IT will reduce transaction costs, such as the co-operative distribution of milk by farmers or allocation and supervision of micro-credits.

The interactivity options for digital IT-related education materials highlight the benefits of digital IT compared with older technologies based solely on logging and reproduction. Interactivity also means personalization in that a person may pick the exact content they want to see. 

This functionality further differentiates IT-based content from previous technologies. Finally, the amount of information available via IT is much greater than it was before. This also allows for the provision of additional services at a reasonable rate for broader sectors of the population.

Ultimately, IT is just a weapon, but intrinsically efficient and highly scalable. The final message of this paper is that it is realistic and prudent to use IT to improve certain facets of the Indian economy and lives.