PM urges IT industry to raise the bar

Pratima Harigunani and Rita R.K.

MUMBAI: Prime Minister Manmohan Singh today urged the Indian IT industry to set an ambitious target of $80 billion by 2010, increasing the earlier target of $60 billion set by the National Association of Software and Service Companies (Nasscom).

He also asked the industry to retain its edge and "work harder" to increase its share in the global markets.

Addressing the concluding session of the three-day Leadership Forum organised by IT industry's apex body Nasscom, the prime minister said, "Last year electronics and IT sector exports were estimated to be around $25 billion, crossing the magic figure of Rs 1-lakh crore and accounting for one-fifth of our exports." This made it the leading export sector of our economy, he said.

"But we must be more ambitious. Considering the way our economy and exports are rising, this target should be met by 2008, and by 2010 we should be looking at a target of $80 billion," he said addressing an audience comprising IT czars of the country.

According to the Indian premier, these targets don't come that easily. He also said that the global competition is growing, and "we need to work hard to retain our edge and even harder to increase our share of the world market".

Singh cited infrastructure and human resource base as bottlenecks to achieve this growth and said that it should be improved. He also assured that this would be a priority of the government and it would remain focused on this.

According to his three-pronged approach, the problem need to be dealt as per different time-frames: finishing schools for the short-term, back-end trainings and improved technical education at the graduate level for the medium-term and radical education reforms for the long-term.

"I expect the Eleventh Plan to address this important issue," he added.

He defined human resource crunch in the industry as both a quantity and quality problem.

On Tier-I and Tier-II cities, he said: "I foresee major improvements in a large number of cities. Where possible, state can develop specialized knowledge townships which can be clusters of knowledge, innovation and excellence in IT."

Lauding IT sector growth as "remarkable", he said it should include bringing the benefits of the industry and technological innovations in healthcare, education, agriculture and rural development.

The Indian IT industry has grown independently as one of the most opens sectors. "In the past, this sector has grown with little involvement of the government. Possibly, as a result, it has been one of the most open sectors with little in terms of regulatory restraints. It has utilized this openness to tap into phenomenal commercial opportunities that have emerged across the globe."

He also mentioned that the industry has not only come into its own, both in terms of investment and employment, but is also having a positive knock-on effect on other manufacturing and service sectors.

Singh, however, said that growth targets ahead would not come easily. "We need to work hard to retain our edge and even harder to increase our share of the world market," he said, adding that BPOs have to move up the value chain towards KPOs. He also pointed to the domestic market and the potential of government vertical in expanding the same.

"IT cannot be sustained for long on the basis of export markets. There are huge opportunities to be tapped in e-enablement of all major sectors, especially agriculture. We are taking steps to enable government systems with several large e-governance initiatives launched so far that are expected to provide sustained growth in domestic demand for IT services.”

Going ahead, IT will be playing an increasing role in transacting government business. He added that states have been successful laboratories for experimenting with these new processes.

Singh assured the industry that the government has a facilitative role in maintaining and building on its competitive advantages. "We have been among the pioneers to put in place a legal infrastructure for e-commerce and are already amending the IT Act keep pace with technology changes," he said, adding the policy framework will continue to be supportive and enabling rather than being a barrier to innovation.

The prime minister also touched upon the Indian rural sector, where nearly 70 per cent of India's over one billion people live. He asked the industry to demonstrate 'inclusiveness' in IT and reach out to the hinterland.

"We need to ensure that our large rural population gets the benefit of the information technology explosion. It can focus on solutions which can benefit the farmer, the artisan, the weaver and the home worker," Singh said.

Congratulating Nasscom and its president Kiran Karnik for championing the industry's cause, he commended the industry again for forever altering India's global standing and raising the expectations of the country's people and the world.

Singh stated that India is today judged by the standards the industry fraternity has set for performance and productivity. The prime minister advised the IT industry, "Do not rest on your laurels, aim to conquer new frontiers."

Singh also felicitated the winners of the Nasscom Innovation in IT Awards 2006.

© CyberMedia News