India’s geographical distance from several important industrial markets (for instance, North America) is no longer an important element in the cost structure of skill-based services. •  It is now feasible to “unbundle” production of different types of goods and services.
India does not necessarily have to be a low-cost producer of certain types of goods (e.g., computers or discs) before it can become an efficient supplier of services embodied in them (e.g., software or music).