News

1986-1995: Framing Policies

DQI Bureau

30 Dec 2006 00:00 IST

New Update

1986

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Government announces the first software policy on December
19; few key guidelines include making the export commitment of software
exporters more stringent, defines software exports as 'body shopping',
de-licenses the domestic industry, lays emphasis on training and opens up
import of software
Moser Baer moves away from time-keeping solutions and starts
manufacture of floppy disks
TVS Electronics set up by Gopal Srinivasan with the aim of
locally manufacturing computer peripherals.
Control Data Corp bags deal to manufacture supercomputers in
India in collaboration with ECIL. DoE and NEC of Japan sign MoU to supply
supercomputers.
CMC implemets project IMPRESS, an online passenger
reservations system for the Indian Railways; it also set up Indonet-a
countrywide data network, subsequently re-christened ITES.
The father-son duo of Shyam Sundar Goenka and Bharat Goenka
launches Peutronics, later famous as Tally, India's premier accounting
software.

1987

The entry of the MNCs through a host of tie-ups with Indian
partners: Apollo through HCL, Bull through PSI Systems and DEC through
Hinditron Computers.
Wipro becomes the first company to receive a DoE certificate
for its products.
Siva PC launched by C Sivasankaran at an unbelievable price
of Rs 29,000, taking the bottom out of the market.

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1988

Nasscom is formed, thanks to the efforts of Harish Mehta,
Saurabh Srivastava, Prakash Ahuja and Shashi Bhatnagar, with the aim to
become a catalyst for the growth of a software-driven IT industry in the
country. The move was spurred by software companies who were unhappy at the
representation being provided by MAIT.
Vijaya Bank becomes the first nationalized bank in the
country to introduce ATMs.
Software gets complete exemption from excise duty.
Ramalinga Raju starts an IT venture, Satyam Computers, with
20 people. 18 years hence, it is on the way to become India's youngest
billion dollar entity.

1989

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Jack Welch meets Sam Pitroda and Jairam Ramesh over a
breakfast meeting and the seeds of offshore outsourcing of software services
to India were sown. GE's tryst with India started in right earnest in
1991.
Electronics Commission finally abolished as the government
realizes that its role is being duplicated by the DoE.
M&A starts amongst Indian companies with HCL taking over
IDM and Modis taking over Computer Point, India's first retail computer
chain.

1990

India gets its first supercomputer as the CRAY XMP-14 is
installed at the Department of Meteorology. The saber rattling by the US
administration however spurred India to set up C-DAC.
The UK-returned accountant-turned award winning documentary
film-maker cum graphic designer Dewang Mehta is hand picked by Harish Mehta
and appointed Executive Director of Nasscom.
N Vittal takes over from R Rajamani as DoE Secretary. He was
instrumental in liberalization of the Indian computer industry. Reduction in
telecom charges for satellite links, exemption from profit tax on software
and services exports, zero excise rates from software sold were some of his
recommendations.
DCM DP bags $11mn US order-till then the largest export
order ever bagged by an Indian firm.

In 1993, Infosys lists on BSE at Rs
145 per share compared to the IPO price of Rs 95 per share.

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1991

Bombay-based Saha Computers & Communications becomes the
first Indian company to manufacture laptops in the country. Zenith too
follows soon.
HCL HP, another JV company between HCL and HP set up by
Arjun Malhotra; this JV developed multi-processor Unix for HP and heralded
HCL's entry into contract R&D.
VSNL Gateway Digital System installed at Delhi, Bombay and
Calcutta. VSNL's e-mail service is launched.

1992

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Return of the prodigal. IBM comes back to India via Tata
Information Systems Ltd, a 50:50 JV with the Tata Group.
India refuses to sign NPT with the US restricting the sale
of advanced computers to India.
A Citibank employee, Rajesh Hukku, spins off a new venture
around the bank's in-house Microbanker core banking product developed in
India with Citibank seed fund only. COSL is born, re-christened later as i-flex
to become India's #1 software product company.
DCM DP, the IT division, spun off from the DCM group and
floated off as a separate company called DCM Data Systems.

1993

Visa restrictions imposed by the US Government. Instead of
B1, you now needed to take an H1-B which was much more difficult to get.
Indian software professionals brought under the ambit of the
Immigration Act of 1990. Under the Act, they would have to pay social
security taxes amounting to 21% to the US government.

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1994

A seven-year old company, PCL, becomes the largest seller of
PCs in the country, outstripping even the behemoth HCL; it also announces
the largest public issue ever to come out of the IT industry till then. But
first signs of trouble visible as Bikram Dasgupta quits PCL.
The National Telecom Policy, NTP-94, is announced. India's
first national information highway is inaugurated.
John McDonald, the comptroller at American Express, is
convinced by Raman Roy to open an operational center for Asia Pacific in
India. The Indian BPO industry is born.
Wipro sets up R&D center in the US; Infosys too opens a
US subsidiary.
HCL HP delivers India's first Pentium machine.

1995

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