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Set up Electronics Mission, says Task Force

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CIOL Bureau
New Update

NEW DELHI, INDIA: The Task Force set up by the Government of India in August 2009 to suggest measures to stimulate the growth of IT, ITES and Electronics Hardware Manufacturing Industry in the country, today submitted its detailed report to the Union Minister for Communications and IT, A. Raja.

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The Task Force, set up in the backdrop of significant challenges being faced by the IT and electronics Industry owing to the global economic crisis, has suggested several measures to overcome the hurdles not only in the short-run, but also defined a roadmap for the industry in the medium and long-run.

The report envisions a US$140 billion electronics and US$105 billion software and services industry by 2014.

The recommendations made by the Task Force that cut across all the verticals include, ensuring a favorable business policy and regulatory environment and building adequate basic, business and social infrastructure.

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The report also suggested establishing a ‘National Electronics Mission’ – a nodal agency for the electronics Industry within DIT and with direct interface to the Prime Minister’s Office (PMO).

The report said India should harness technology for inclusive growth by driving greater efficiency, transparency and monitoring of employment and livelihood related projects, e-governance projects and developmental projects and foster a sustainable ecosystem for innovation, R&D and manufacturing.

India should encourage ‘Made for India’ designs, solutions and devices, local value addition and IP creation especially for developmental schemes, defence and strategic needs.

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It also suggested there should be some amendment in existing semiconductor policy.

The Task Force was chaired by Ajai Chowdhry, Member, Steering Committee, MAIT and Chairman & CEO, HCL Infosystems Ltd., and co-chaired by Kiran Karnik, past President, NASSCOM. The heads of various Associations in the IT and Electronics Industry were also members of the Task Force.

Commenting on the objectives of the Task Force, R. Chandrashekhar, Secretary, Department of IT, Ministry of Communications and IT said the aim of the Task Force 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.

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Delineating the vision for the IT and Electronics industry in India, Ajai Chowdhry, remarked, “The current demand in the Indian electronics industry stands at USD45 billion and is projected to grow to USD125 billion by 2014 and to USD400 billion by 2020, with exports expected to increase from the current USD4 billion to USD15 billion by 2014 and to USD80 billion by 2020.”

As regards the IT/ITeS Sector, the domestic market currently stands at USD12.4 billion and is expected to grow to $23 billion by 2014 and to $50 billion by 2020, with exports expected to increase from the current USD 43.6 billion to USD 82 billion by 2014 and USD 175 billion by 2020.

“However, to achieve these ambitious targets, a definite action plan needs to be put in place by both the Industry and the Government. Further, some immediate measures also need to be taken to tackle the current sluggishness in the market,” he said.

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Detailing the very inclusive approach adopted by the Task Force, Kiran Karnik, Co-Chairman mentioned that the Task Force has come up with an exciting vision based on the potential of this vital sector to contribute to the country’s development and growth.

“The holistic exercise included a well-rounded analysis, not just of the various verticals of the Industry, but also by size of the organisation i.e. small, medium and large. The Task Force looked at how IT could proliferate into rural India and aid inclusive growth, as also the multi-faceted dynamics of the Industry,” he said.

Expressing satisfaction on the inputs and recommendations of the report, Raja remarked, “The Government of India has identified IT and electronics hardware manufacturing as a key thrust area. Developing IT and electronics products and solutions for inclusive growth is the need of the hour.

He said he was confident that the IT and Electronics Industry in India will achieve its targets as envisioned by the Task Force.

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