Advertisment

Let Us Get A Move On

author-image
DQI Bureau
New Update

Sometime back, in these very

columns, we had hypothesized about an economic revival. That was based on some raw data

pertaining to IT sector, combined with some gut feel. As the economic results of Q1 come

in, alongwith the corporate results, our hypothesis has been proved correct. There is

indeed a revival of economic fortunes of the country and most sectors including industrial

segment, exports and agriculture are reporting robust growth. This augurs well for the

fortunes of the Indian IT industry as it portends a renewed phase of domestic industry

growth-something that has been eluding the industry for close to two years in a row. A

healthy domestic industry also means well for the sustenance of the export sector that has

been doing well traditionally.





However, there are a few issues that need to be tackled immediately. Firstly, GoI must
step up its spend immediately. As promised in the IT Task Force, the government

departments must allocate 1% of their budget toward IT and must be forced to spend the

same, without allowing it to lapse. This is a great engine for domestic growth as

government spend will spur downstream expenditure dramatically. Secondly, the telecom

policy must be allowed to see the light of the day. While a case is being made out of it

being an election stunt, nothing could be farther from truth. The policy that is being

opposed so vehemently by the Congress party is another variation of its own principles. To

use the policy as a political football is tantamount to playing with the health of the

economy. Finally, as and when the new government comes in, there is enough work to be done

on the reforms front, both in telecom segment as well as in other sectors of the economy.

If the pace is not sustained, there is every danger of a relapse of the malaise that

afflicted us for 30 months.




PS: Having spent six years in

constant dialog with you, it is time for me take a bow and hand over the column to my

successor. It has been an educative experience disseminating information about the most

exciting industry in the world, and I am richer in the process.

Advertisment