Abstract
India is promoted as the global hub of IT and ITES enabled services. The Economic Times has dubbed Bangalore as the BPO capital of world, but the question remains as to whether the Indian corporations would match the standards of western world. Government both central and federal have started to promote these sunrise sectors along with other areas like biotechnology etc. in various manners by giving tax benefits, providing cheaper loans, upgrading infrastructure etc. It would be however wrong to say that this IT boom is centralized to Bangalore only other states like Andhra Pradesh, West Bengal are also actively promoting their respective capital cities Hyderabad and Calcutta. This paper looks into the policy initiative taken by Indian central government and state governments of Karnataka, the leader of BPO services and West Bengal, a late but enthusiastic entrant to the IT race.
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