On The Evolution of Manufacturing in India

In the post independence era, India was geared towards a program

of self-reliance and internalization of production. The 50 years of the Indian

Computing Industry, from 1956 to 2006, has seen a mixed bag of experience.

Before 1956, we had a few computer installations, mainly through second

generation products, primarily catering to data processing applications.

In the earlier periods, the industry witnessed the most

stringent measures from the government in regulating, manufacturing and

technology transfers. No significant R&D activities were supported by the

Government, though state run and private sector laboratories and defence

establishments with limited funds could deliver limited successes.

The mid-'60s and '70s were monopolized by few MNCs. The

industry witnessed restrictions through licenses, high import duties, software

export obligations, etc. Trade treaties between countries also influenced the

import of Hardware from Russia and the UK.

In the 1970s, efforts were made to encourage indigenous

manufacturing of hardware. But the result was a poor market with low supply and

highly priced products. In the late '70s, restrictive industrial policy curbed

access to technology, slowed market penetration and virtually eliminated

overseas competition.

In mid-1980's, India's development strategy was

characterized by import substitution policies aimed at nurturing the domestic

industry. With the Government's emphasis on self-reliance and internalization

of production, and due to the vision of some of the industry technocrats and

scientists, the role of the Indian IT manufacturer was conceived.

With these objectives, the Indian academia and entrepreneurs

started their evolution. Initially, restricted imports of current technology

products were permitted and minicomputers and some current state-of-the art

products were made available. Simultaneously, Indian entrepreneurs along with

education, scientific and engineering research entities, started working to

catch up and create a local industry, to be competitive and cost- effective

embracing wide range of applications.

Though there were constraints initially, the industry made

consistent efforts in the areas of R&D, design, development, manufacturing,

fabrication of products and solutions with co-operation among the players as

well as research institutions.

Today, the industry has succeeded to produce cost effective,

current technology products and put up state-of-the-art manufacturing

facilities, R&D to have globally competetive products. The industry has made

enviable strides to catch up with the latest hardware and solution technology.

The IT industry's achievements during the last five decades

are:

• R&D

• Import substitution / indigenization

• Cost reduction

• Accreditation of international quality and procedural
  
  standards

• Effective global player serving domestic and global markets

• Creating employment for a wide spectrum of
  
  multi-disciplinary talents

The impact is overwhelming and in all segments of economy, the

industry has now become a globally compatible player with many, including global

players participating in this endeavor to continue to catch up with the current

and on-going changes in technology.

The industry continues to work toward its mission-"Together

we can and we will, make tools available to create better life through

technology".