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According to a new study sponsored by Business Software Alliance (BSA), India ranks 48th in the world in the 2008 IT industry competitiveness index, moving 2 places from its 2007 ranking of 46 in the index. India has an overall score of 28.9 on the IT competitiveness index.

The key attributes of a country that were examined in analysing its environment for the IT sector include: IT talents and skills developed geared for future. Orienting technology courses to cater to new demands; strong support for private sector investment in R&D; world-class technology infrastructure; protection and enforcement of IPRs; an open, competitive economy; and carefully calibrated government support.

The study finds that India performed strongest in business environment and support for IT industry development with a score of 59.3 per cent and 54 per cent respectively which is an encouraging indicator. Areas of improvement include IT infrastructure and R&D environment in the country which are relatively low in the IT industry competitiveness index.

Those countries that perform well in these six 'competitiveness enablers' generally are home to high-performance IT industries. High performing IT sectors directly contribute more than 5 per cent to the gross domestic product of most advanced nations.

"This year's index shows that a country's IT competitiveness rankings can fluctuate on the index very rapidly," said Keshav Dhakad, chair, the BSA India Committee. "The ability of local governments and IT industries to deliver jobs and a better quality of life through information technology is strongly affected by how they handle the six drivers of competitiveness. The government has made progress, however there is still a greater need to develop a stronger legal and R&D environment; complemented with a better IT infrastructure to help Indian firms become more competitive and leaders in the technology space. The recent evolutionary trends in the domestic IT industry towards product development for both national and international markets are very encouraging and healthy.