LOCATION CHOICE OF KNOWLEDGE-BASED INDUSTRY IN INDIA

Abstract

The research study’s primary focus was to assess the knowledge-based Information and communication technology sector’s spatial location choice and economic development. The institutional policy recognised the knowledge-based economy as the critical reason behind the economic growth in India. Therefore, the initiation of Research analysis began with the conception of three research objectives. The first objective determines India’s evolution as the hub for human capital and its transition into a knowledge-based economy. The second objective examines the location choice of knowledge-based innovation activities by multinational enterprises changed in a globalised world. The third objective analyses the location choice of Bangalore as the most favoured KBICT destination amongst various other KBICT hubs in India. Diversity in urban environments attracts human capital and stimulates economic activity within the urban agglomeration. Concerning the first approach of studying regional theories in industrial locations and comparing them with the Indian industrial policies, a clear understanding of conceptualising specific sector policies based on theoretical arguments helped stimulate development in certain regions. Spatial development in the Indian industrial policy determines three different programme phases. Firstly, the initial post-independent policies professed industries’ location to balance regional development—the self-reliance period was the second phase of industrial development with the state’s highest control in spatial area and production activities. The third phase of industrial reforms in 1991 significantly reduced the state’s role in industrial development. It increased private investment from national and international firms, signalling the liberalisation of industrial policies across India’s regions. These reforms initiated the development of export-based knowledge-based activities and revolutionalised computer technology usage in industrial development. In the past decade, the result of regional innovation policies has led to developing self-reliant entrepreneurial activities assisting in the global recognition of Indian talent and its inclusion in the international global labour market.