India is benefiting from a demographic transition, recent forms of economic liberalization, and low cost of production to become an important hub for technological development in the developing world. Despite significant strides in recent decades, India still faces many obstacles which must be overcome to sustain its recent successes. The first obstacle is corruption, which retards development and investment. The second problem is the legacy of the license raj and difficulty in doing business. The third problem is weakness of infrastructure, especially power and transportation which continue to retard development. To sustain developments in technology, India must improve infrastructure, reduce corruption, eliminate trade barriers and continue to invest in education.