AbstractIntroducing computers into Indian industry has been an uphill struggle. The new computer policy announced by the government in late 1984 has provided some incentives, but areas such as banking are still behind in their applications. In contrast, the railway reservation system has been running successfully for a number of years. Union pressure in the banks, caused by the concern for the security of jobs with the introduction of computers, held up automation.The import of technology into India is high and an indigenous electronics industry is unlikely to flourish unless technology and equipment imports are unpackaged. This presents another set of economic problems. Restrictions should be lifted so that all categories of the electronics industry can perform to the best of their ability and certain items of production are not reserved for some firms.