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Indian IT Industry in Factory Asia

The Indian IT sector has recorded impressive growth in the post-reforms period of the Indian economy and has come to attain global prominence in terms of exports. The conventional trade and services data shows that North America and Europe are the primary destinations for Indian IT exports whereas the burgeoning economies of East Asia (the “Factory Asia”) feature less prominently in the Indian IT story. We shed new light on this seemingly puzzling phenomenon by looking at the Trade in Value Added (TiVA) statistics related to the Indian IT sector.