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Showing posts from January, 2006

Unemployment and the IT Boom

The rise of the IT industry in India is being heralded by all and sundry. State governments are falling over one another to attract investment from these companies in their states. The sunrise sector – as it has come to be known – seems the answer to one of the greatest problem facing India today – that of unemployment. The fact that Infosys, TCS, Wipro and their likes are employing nearly 50 thousand employees each and individually each of these companies have surpassed the headcount in the “old-economy” companies and are growing more than 30% per year has added to the notion of IT companies being the knight-in-shining-armour for the government. It has to be said here that over the last 50 years, governmental policy has not helped create more jobs. On the contrary the government has tried its level best to stifle entrepreneurship and industry, thereby killing any chance creating greater jobs.

It is true that the IT industry has been able to create a great number of jobs. It is true th…