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Article

1 Nov 2005

Author:
Patrik Oskarsson, for Finnwatch

[PDF] Indian Attraction - Profitable multinationals as subsidy junkies – A study of incentives for foreign investment in India

India’s IT miracle is built on Software Technology Parks, a similar concept to the SEZ. About 85 per cent of software exports come from these parks, where concessions on taxes, land and infrastructure costs, as well as on labour rights, have been made. Nokia and Kone are today utilizing Software Technology Parks among Finnish companies in India, but the prevalence of parks is such that becoming a member of the park package is equal to investing in IT in India. When companies like Tieto-Enator and WM-data declare their intention to increase software development in India, they will use these parks. Ericsson and Nokia are also subcontracting work to Indian IT companies, and yet again the same parks are used to deliver the world’s low cost software. [also refers to Elcoteq, Volkswagen, Wipro, TCS, Flextronics, BMW]