Bureaucrats and politicians did not understand software and computers and thus did not know how to regulate and eventually strangle the industry, Ackerman said at an interactive session.

"It is an industry which is open and competitive, with relatively few barriers preventing others from entering, unlike many Indian industries," he said at the meet organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

Most of the traditional business houses of India are not heavily represented in it, or have had the vision to set up seperate companies that are managed along completely different lines than their traditional businesses, Ackerman said.

"Information technology is a joint creation of foreign companies, especially American firms, Indian Americans and of domestic companies. It is too busy making money for Indians, for Americans and creating prosperity in both countries," he said.