If you ask me why is technology important for economic growth, I would have to answer this question from the point of view that it is a technology driven economy. In a world dominated by information technology, progress in information and communication technology drives economic development. Let us take information technology as an example. In the next few years, India will become the largest information technology market in the world with its enormous market potential and an estimated annual growth of thirty percent.
Developing nations such as India need to upgrade their infrastructures to be competitive. Lack of infrastructure and low investment to create more skilled IT professionals are hampering their progress. The country's low economic growth and infrastructural development are hindering its ability to achieve the rank they deserve in the IT industry. The country needs to address these issues if it wants to continue improving its Information Technology service sectors.
Why is technology important for economic growth in developing countries? This is because information technology is at the heart of the information economy. The creation of technology driven economy means that businesses are using technology to develop their businesses and improve productivity. This means that the country's poor economic performance is being counteracted by improved technology at the same time, which improves the country's overall performance.
Of course there are many other factors that contribute to economic growth. For a developing country like India, the role of private sector is crucial. However, with limited access to capital, business owners and entrepreneurs often turn to non-state or even mainstream investors to help them launch their ventures. In this respect why is technology important for economic growth in a developing nation like India?
First and foremost, technology drives the economy as it creates demand for more goods and services. With the help of information technology, more goods and services can be produced per dollar of investment. Of course a high level of literacy along with proper distribution of education is also vital to a developing country's economy. Without these basic economic fundamentals, the technology-driven economy will cease to exist. It will be pointless to have technology if people do not have proper information technology and access to the internet.
Besides basic economic fundamentals, technology helps the country to achieve its developmental goals. The internet has allowed many Indians to connect to the rest of the world for business purposes. Without the internet and emails, the global economy would have been largely hindered, especially in terms of remittance and finance. India's development path revolves around the use of information technology, which is why technology is so important for economic development. By having email and the internet, Indians are able to keep in touch with family members and friends, and also keep abreast of current events.
Finally, technology helps solve some of the more pressing development problems emerging in developing nations. For example, mobile phones are crucial tools for improving the efficiency of government, as well as helping individuals stay connected. With cell phones, residents of developing . . . . . . nations are able to contact each other and obtain vital information. Mobile phone companies have seen tremendous growth in India, as well as in countries around the world, due to this technology. In fact, in some developing nations like India and Pakistan, the government encourages the use of cell phones and other relevant technology.
Technology has played an important role in the successful development of economies. Developing nations depend on technology for the exchange of information, finance, and other essential services. Without technology, developing nations may find it difficult to progress economically and stay ahead of competitors. Besides being beneficial to the economy, technology also promotes social development, allowing individuals to meet and interact socially, and to participate in the economic development process. Therefore, it is not only important for economic development, but also for social development.