$245 Billion IT and Electronics Opportunity by 2014: IT Task Force

In what is being considered as an important step in spelling out
priorities for the IT industry and providing the much needed stimulous,
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, A
, 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
for India designs”, there were some sector specific
as well. (see below).

handing over the report Ajai
, 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.

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.

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 &


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.

Electronics System
Design & Manufacturing
  • 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.

Strategic Electronics
  • Focus on technology areas that need to
    be developed domestically as they are unlikely to be transferred by
    global players

  • 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

  • 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

  • Accelerate process by which private
    sector and indigenous participation happens. Initiate implementing the
    key recommendations from the Kelkar Committee Report on the following

  • 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

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