Regional Incentives and the Quality of Investments of ICT Service Industries in Indian Non-Metropolitan Regions : the Experience of Dehradun, the Capital City of Uttarakhand <Research Note>

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  • インド地方都市におけるICTサービス産業開発と立地企業の特性 : ウッタラーカンド州都デヘラードゥーンの経験 <研究ノート>
  • インド地方都市におけるICTサービス産業開発と立地企業の特性 : ウッタラーカンド州都デヘラードゥーンの経験
  • インド チホウ トシ ニ オケル ICT サービス サンギョウ カイハツ ト リッチ キギョウ ノ トクセイ : ウッタラーカンド シュウト デヘラードゥーン ノ ケイケン

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Abstract

This article has two principal aims. The first is to represent the development policy for ICT service industries of the Sate of Uttarakhand, a newly constituted state in Northern India after being separated from Uttar Pradesh in 2000. The second aim is to explore in detail the quality of investments and the business operations of ICT service industry in Dehradun, the capital city of Uttarakhand. Until recently, researches on the service and export-led ICT industry in India have been devoted to metropolitan regions where the industry agglomerated such as Bangalore, Hyderabad, Chennai, Mumbai and National Capital Region (NCR). However, in order to break up the external diseconomy of the agglomerations and to enhance cost advantage under the competitions among emerging countries, ICT industry has begun to explore alternative locations and extend its trans-regional networks to non-metropolitan regions within India. Meanwhile, given the reconfiguration of spatial distribution of the industry in India, the state governments have launched new industry policies in order to attract the ICT industries diffusing from the metropolises and to create job opportunities for educated young people. The state government of Uttarakhand launched the ICT policy with fiscal subsidies and a development of industrial park in 2006 for attracting and rooting investments from the NCR. Nevertheless the infrastructure is still generally poor and slow due to the lack of "institutional thickness" and ambiguous initiatives of the state government. On the contrary, the NCR-based BPO companies are making substantial investments in their infrastructure and the increase of employee in Dehradun in order to enhance cost-advantage. The growth of low-value added operations depends on the ability of young and crude labor pool in the region. It can be reasserted that the industries devoted to exploit basically cost differences between the NCR and its peripheral state.

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