Name- Yogender Bansal

Roll no- 11712303920

The technology can be regarded as primary source in economic development and the various
technological changes contribute significantly in the development of underdeveloped countries.
Technological advancement and economic growth are truly related to each other.
The level of technology is also an important determinant of economic growth. The rapid rate of
growth can be achieved through high level of technology. Schumpeter observed that innovation
or technological progress is the only determinant of economic progress. But if the level of
technology becomes constant the process of growth stops. Thus, it is the technological progress
which keeps the economy moving. Inventions and innovations have been largely responsible for
rapid economic growth in developed countries.
The growth of net national income in developed countries cannot be claimed to have been due
to capital alone
Changing technologies and shifting globalization patterns bring manufacturing-led development
strategies into questions. Technologies such as IOT (internet of things), advanced robotics and
3-D printing are shifting what makes locations attractive for production and threaten significant
disruptions in employment particularly for low-skilled labor. These trends raise fears that
manufacturing will no longer offer an accessible pathway for countries to develop, and even if
feasible, that it would no longer provide the same dual benefits of productivity gains and job
creation for the unskilled. This scenario makes it useful to assess what impact technologies are
in fact having on employment in the Indian context.
It may seem paradoxical that modern IT, typically associated with developed country markets
and capital-intensive methods of production, has any relevance for a country where hundreds
of millions, particularly in rural areas, still lack basic needs of health, education and sanitation.
Nevertheless, there are many efforts underway in India and other developing countries to
demonstrate the concrete benefits of IT for rural populations, and to do so in a manner that
makes economic sense. The general presumption behind these efforts is that resources spent in
this manner have a positive return on development large enough to justify a possible diversion
from other uses that directly address those basic needs.
In fact, the technology can be regarded as primary source in economic development and the
various technological changes contribute significantly in the development of underdeveloped
countries.
IT may have a special role to play in growth and development simply because of empirical
characteristics that apply at the current time. In particular, the recent and continuing rapid
innovation in IT make it a dynamic sector that is an attractive candidate as a contributor to
growth for that reason alone, much as the automobile industry was targeted by the Japanese
after World War II. On the other hand, there may be features of IT that make it attractive from
a theoretical perspective on economic growth. For example, IT may be one of the sectors in
which countries such as India have, or can develop, a comparative advantage.
New technologies are adopted on account of numerous benefits. These vary from

 expand market reach;

 better management and utilization of human and physical resources;
 enabling to serve end-users more effectively;
 emergence of new products;
 ability of technologies to modify existing products;
 and effective information management. Provision of any-where, anytime, and any-one
of new technologies is another feature that increases its acceptability.
New technologies could also generate employment if technological change is likely to result in
creation of new markets. Emergence of mobile telephony in recent times is a case in point. New
technologies could also create employment if they offer improvement in services. The
emergence of internet enabled information processing activities in services sector is another
example. The internet enabled services such as financial transactions in the banking sector may
be considered as the realization of any-where, any-time, and any-one aspect of new
technology. And such technologies not only provide better services but also create employment
in services sector. In view of these recent technological developments it may not be so
appropriate therefore to label technological development as employment reducing.