In this timely and unique study, the innovations in Indias information (IT) industry are examined in detail. Globally the IT Industry has experienced phenomenal growth. For many economies, IT is expected to be the engine of growth for many countries. Already in India, the IT industry has made a mark in the global economy. However, India faces major challenges in meeting the basic needs of all its people and simultaneously meeting the requirements of competing in the increasingly globalized post-WTO world economy. The Indian IT sector provides a unique window to understand the process of development in an era of global economic integration. This unique study examines the issues surrounding the analysis of the Indian IT sector on a global, national, regional, firm, and product level and the significance of national policies to sustain the competitiveness of the Indian IT sector.