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Purpose - The purpose of this paper is to describe the progress India has made in its move towards a knowledge-based economy with details of how the Indian Government has demonstrated its commitment to the development of fundamental pillars of knowledge sharing infrastructure, knowledge workers and a knowledge innovation system. Libraries are identified as key players in building an inclusive knowledge economy (KE) for a country. Design/methodology/approach - An empirical study of the initiatives taken by Government of India as well as premier institutions and non-governmental organisations in the area of information literacy, lifelong learning and knowledge repository development was undertaken. These are reviewed to report on the contribution each of them has made in the development of KE in India. Findings - The practice-based examples of how information and communication technology (ICT) projects are influencing contemporary Indian society and an account of government policies in regard to ICT implementation and development towards a KE are presented. The impediments in the process of KE in India are identified and recommendations are made. Originality/value - This is an attempt to bring together initiatives and projects initiated by the Government of India as well as other agencies aimed at developing a knowledge-based society which will ultimately lead to a KE in India. [ABSTRACT FROM AUTHOR]