In what is being considered as an important step in spelling out
priorities for the IT industry and providing the much needed stimulous,
The
href="http://dqindia.ciol.com/content/egovernance/2006/106052102.asp">
IT Task Force  (Set up
in 2009) submitted
its detailed report to the government of India. The report forsees a
$140 billion electronics and $ 105 billion software and services
Industry by the year 2014, besides recommending the setting up of a
National Electronics Mission
However, what remains to be seen is how
many of these recommendations are seriously taken up by the ministry.
Owing to the parliament session that is in process,
href="http://dqindia.ciol.com/content/top_stories/2009/109040701.asp">A
Raja, minister for
communications and IT, refrained
from making any comments. While the broad recommendations of the
Task Force include favorable regulatory environment, Sustainable
innovation ecosystem, domestic market growth catalysts and
“made
for India designs”, there were some sector specific
recommendations
as well. (see below).
While
handing over the report
href="http://dqindia.ciol.com/content/50yrsIT/People/2006/106123016.asp">Ajai
Chowdhry, the Chairperson of the
Task Force, made clear that the
downturn necessitated such an action more than ever as the growth of
the industry has been relegated to the single digit bracket.
Moreover, he said that there was a great need to bring in scope for
innovation and leadership in which some countries are way ahead us.
“For momentum does not define leadership”, he said.
As
the report was handed over, Chowdhry
went on to say that the industry is handing over its
“dream” to
the government and hoped to see it come true very soon. Even though the
parliament session left
nothing much to say, we shall keenly watch out for the actions that
the minister claimed his ministry will spring into very soon.
R.
Chandrashekhar,
Secretary, Department of IT, Ministry of Communications & IT
said, “The aim was to chart a vision and recommend a suitable
strategy for development and growth of all segments of the value chain
of the ICTE sector in India for the next five years and beyond, with
concrete and implementable recommendations/action points for making the
industry globally competitive. The goal is to arrive at a shared
Government Industry Vision of what the sector should aspire to achieve
in next few years, particularly in terms of investment, contribution to
GDP and employment.”
Kiran Karnik, Co-Chairman of the Task Force said, “We looked
at how IT could proliferate into rural India and aid inclusive growth,
as also the multi-faceted dynamics of the Industry keeping in mind
issues such as infrastructure, domestic market development, employment
generation, exports, impact of international agreements &
transactions.”
style="font-weight: bold; color: rgb(153, 0, 0);">Key
Highlights:
face="Times New Roman, serif"> size="3">Software and Services
-
Establish
India as a trusted global hub for professional services and managing
risks effectively -
Global
trade development and actively advocating free trade in services,
including the free global movement of service providers -
Maintain
a globally competitive tax regime — extend Section 10A/10B
and provide parity with SEZ scheme. Ensure incentives under Section
10A/10B and SEZ continue after the direct tax code is introduced.
size="3">Electronics System
Design & Manufacturing
-
lang="en-GB">Establish a 'National
Electronics Mission' to help in the synchronized functioning
of the Industry through effective coordination across ministries and
government departments in the centre and the states and would enhance
the ease of doing business. -
Nurturing
established electronics manufacturing clusters and develop them into
centres of excellence, while encouraging new ones.
size="3">Strategic Electronics
-
lang="en-GB">Focus on technology areas that need to
be developed domestically as they are unlikely to be transferred by
global players -
lang="en-GB">Identify and provide support in areas
where the private sector can collaborate and provide superior execution
capabilities to Defence Public Sector Units (DPSUs) such as fabrication -
lang="en-GB">Consider IT and software capabilities as
an enabling mechanism: significant changes are required to reform
current organization and acquisition practices and fix issues such as
the mismatch between technological planning & development -
lang="en-GB">Accelerate process by which private
sector and indigenous participation happens. Initiate implementing the
key recommendations from the Kelkar Committee Report on the following
areas: -
Provide
a level playing field for private players with the DPSUs -
Tighten
offset clauses to provide for more effective technology transfer to
India and enlist private sector participation in utilizing
investments/business resulting from the offset clause