The post-liberalization rapid rise of one of the most dynamic countries in the world, India, demonstrates that it has the potential to change the global economic vista in the 21st century. The aim of the thesis is to analyze and discuss, theoretically as well as empirically, the importance of the knowledge economy in India's globalization and development. Further, study shall be conducted as to why India chose this path, whether growth can occur only through India's ability to use knowledge, its implications and whether future development will be sustainable.
India as a newly industrialized country has outpaced other developing nations in terms of macroeconomics. It is the fourth largest economy in the world in terms of Purchasing Power Parity and has shown phenomenal socio-economic progress in the last 60 years of independence. Considered the 10th most industrialized country in the world it is striding confidently into the entrepreneurial e-age. But all this was not achieved over night. Essentially an agrarian economy, more than 60% of the population earns its livelihood through agriculture and the sector contributes significantly to the gross national product. But this trend seems to be on the decline. India is currently going through a transition due to its fast paced development, shifting from the agricultural rural society to the industrial modem society. The phenomenal growth exhibited by the services sector as the most dynamic sector ill the Indian economy has been an important contributor and has been cited as nothing short of a revolution. The emergence of the knowledge economy within the services sector changed the demand for labor and labor standards. The economy of knowledge implies the utilization of knowledge for the production of benefits. Past research has already shown that the knowledge industry contributes significantly to the gross national product of a country. Within the present era of globalization, knowledge resources such as technical know-how and expertise, intellectual property etc. have gained precedence over the other factors of production. India embarked upon the path of the development of its knowledge sector for its progress which in tum enabled it to embrace the forces and benefits of globalization.
Despite its macroeconomic stability, a dynamic private sector, institutions of free market economy, sound financial system there is still room for further improvement. There is tremendous potential that is yet to be achieved. The thesis will attempt to answer questions as to how well India is addressing key issues in making effective use of knowledge for development and its standing in the rest of the world in the era of "Knowledge Revolution". The organization of the thesis is as follows. Chapter 1 deals with a theoretical overview of the concepts of development and globalization keeping in view the role of the knowledge economy. Further, Chapter 2 relates to the overall pattern of India's development and the relative importance of the various sectors of the economy contributing to growth. Chapter 3 discusses in detail the origin and the growth of the knowledge sector in the Indian economy and how it is facilitating India's emergence as a global power. The various social, political and economic institutions prevalent in India and the reasons for the dominance of the knowledge sector in India's globalization is discussed in Chapter 4 while Chapter 5 talks about the contribution of India's services sector in achieving growth targets. The implications of India's knowledge economy for future sustainable grow1h and development are dealt with in Chapter 7. And finally, Chapter 8 presents the concluding remarks.