MAIT Report for Indian IT

MAIT has released a report on improving PC penetration, internet and domestic software in India.

The committee has delineated a vision for India, which encompasses to increase the pace of IT penetration in the country and achieve the levels prevailing in China, in the next three to four years. India, by 2008, should achieve a PC penetration of 65 per 1,000 from the existing 14 per 1,000; internet penetration of 40 per 1,000 from existing 5 per 1,000 (number of subscribers); the domestic software industry, including the local language applications and content industry, to grow seven-fold from existing about USD 4 billion (Rs. 1,900 crores) to USD 28 billion (Rs.13,300 crores); all villages to be made online for agricultural, healthcare and education services; and IT should contribute significantly to the growth of the national GDP.

The report with an objective of increasing the IT penetration in India by creating an environment that encourages the domestic development of the entire IT virtuous cycle and eventually leading to attracting investments in IT manufacturing, has recommended launch of several mission mode projects such as IT enabled teaching and IT teaching in education; IT deployment for economic development in rural India; Telemedicine; affordable computing for homes and SMBs; e-governance; joint industry-government IT usage promotion program and a roadmap for attracting IT manufacturing investments in the country eventually leading to not only a vibrant domestic manufacturing industry but also substantial exports. The report stresses on the urgent need to implement the recommendations and the mission mode projects, as they are critical not only for national development, but also essential to reach the target levels of IT penetration in the country. Also, the recommendations are interlinked and the desired multiplier affect can be had only once these are implemented in totality, in a synchronised fashion.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.