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.