Transformation of indian economy into knowledge economy – prospects and challenges Dr. Gupta Deepakshi*, Dr. Malhotra Neena** *Associate Professor, Business Management DepartmentChandigarh University, Gharaun. **Reader, Punjab School of Economics, GNDU, Asr, Punjab. Online published on 6 October, 2012. Abstract In a rapidly changing world economy, the driving force of a nation's development and advancement is embedded in knowledge acquisition, knowledge discovery and knowledge creation through technological evolution. According to World Development Report 1998, knowledge has become the most important factor than land, tools and labour. The concept of the ‘Knowledge Economy’ or the ‘New Economy’ is used to describe an economy in which the generation and exploitation of knowledge play the predominant role in the creation of wealth as well as sustainable development with overall welfare. The present paper, examines that the fundamental components of knowledge economy, which are also stressed upon Indian economy are – (1) Human resource is considered as most vital resource as compared to any other resource. (2) A focused investment in education and training, with more focus on technical education. (3) More emphasis on IT-ITES and internet services. (4) A well developed telecommunication network, available for business nationally and internationally at a low cost. (5) Emphasis on the development of general infrastructure. (6) Promotion of intense research and development in emerging technologies. (7) Hi-tech, cheap and effective health facilities cover massive people. No doubt, all the above described components are found in Indian economy, but still there is a need for improvement to make India - a truly Knowledge Economy. The Indian policy makers are aware of challenges and opportunities for transforming India into a knowledge economy. However concrete policies are needed to implement the strategies of knowledge creation, application and dissemination. Hence, government and private sector should generate such environment which most conductive for knowledge economy. Top Keywords Human Resource Development, Information Technology Sector, Knowledge Assets, Knowledge Economy, Knowledge Workers. Top |