The following backgrounder has been issued by the Union Ministry of Communications & Information Technology on the occasion of Economic Editors’ Conference 2008 here today.

1.         Indian IT-ITeS Industry – Growth Performance

1.1        The Indian Information Technology- Information Technology-enabled  Services (IT-ITeS) industry  has shown remarkable resilience in the year 2007-08. Continuing on its established track record, the overall Indian IT-ITeS revenue aggregate is estimated to have grown by over 33 per cent to reach US$ 64 billion in fiscal year {FY} 2007-08 as compared to US$ 48.1 billion in FY 2006-07. 

1.2        The total software and services exports is estimated at US$ 40.4 billion in 2007-08, as compared to US$ 31.4 billion in 2006-07, an increase of 28.3 per cent.  ITES-BPO exports are estimated to grow from US $ 8.4 billion in 2006-07 to US $ 10.9 billion in 2007-08, a year-on-year growth of over 29.8 per cent. 

1.3        The US and the UK remain the key markets for Indian IT-BPO exports (excluding hardware), accounting for nearly 80 per cent of the total.  However markets across Continental Europe and the Asia Pacific are also witnessing significant year-on-year growth..  This trend towards a broader geographic market exposure is positive for the industry, not only as de-risking measure but also as a means of accelerating growth by tapping new markets.  

1.4        Though the IT-BPO sector is export driven, the domestic market is also significant.  The revenue from the domestic market (IT Services and ITES-BPO) is estimated to be US$ 11.7 billion in 2007-08 as compared to US$ 8.2 billion in 2006-07 an a growth of about 42.7 per cent.  BPO demand in the domestic market has witnessed noticeable growth over the past few years. 

1.5        The total IT Software and Services employment is estimated to touch 2.0 million mark in 2007-08 as against 1.63 million in 2006-07, a growth of 22.7 per cent YoY. This represents a net addition of 375,000 professionals to the industry employee base in 2007-08..  The indirect employment attributed by the sector is estimated to about 8.0 million in 2007-08. This translates to the creation of about 10 million job opportunities attributed to the growth of this sector.

1.6        As a portion of national GDP, the IT-BPO sector revenues are estimated to have grown from 5.2 per cent in 2006-07 to an estimated 5.5 per cent in 2007-08.

1.7        The industry has set a target of US $ 60 billion in export revenues and US $ 73 – 75 billion in overall software and services revenues to be achieved by 2010. 

Major Initiatives in Information Technology :

2.                   National e-Governance Plan (NeGP)

2.1        The National e-Governance Plan (NeGP) was formulated by the Department of Information Technology (DIT) and Department of Administrative Reforms & Public Grievances (DAR&PG) keeping in view the priorities of Government’s National Common Minimum Programme. NeGP aims to promote e-Governance on a massive scale in areas of concern to the common man.

2.2        The NeGP has been formulated for taking a holistic view towards the entire e-Governance initiative across the country and for giving a thrust to e-Governance activities across various arms of government at the national , state and local government level. NeGP uses a programme approach, which is guided by a common vision, strategy and approach to objectives. This approach has the added advantage of enabling huge savings in cost, in terms of sharing the core and support infrastructure; it enables interoperability through standards, which would result in the citizen having a seamless view of Government.  The programme is overseen at the highest level by the Apex Committee headed by the Union Cabinet Secretary. 

2.3        The NeGP consists of 27 Mission Mode Projects (MMPs), which are currently at different phases like conceptualization, design, implementation and post-implementation.

* These MMPs are private sector initiatives

2.4        To sustain these 27 MMPs, and to create the right governance and institutional mechanisms, set-up core infrastructure, formulate key policies, standards and the legal framework for adoption, and to channelise private sector technical and financial resources into the National e-Governance efforts, 8 key components have also been identified for implementation as below:

2.5        For the implementation of NeGP, DIT is creating Common and Support Infrastructure (National/State Wide Area Networks, National/State Data Centres, CSCs & Electronic Service Delivery Gateways) and has made suitable arrangements for monitoring and coordinating the implementation of NeGP under the directions of the competent authorities in this regard. It has also evolved/ laid down Standards and Policy Guidelines, is providing Technical and Handholding Support, undertaking  Capacity Building, R&D, etc., as required for successful implementation of various e-Governance Projects.

2.6        The MMPs are owned and spearheaded by various line Ministries concerned for Central Government, State Governments and Integrated projects. The Ministry/Department concerned is entirely responsible for conceptualisation, design & development, scheme formulation and implementation of their respective MMP. For State Sector MMPs, States are responsible for implementation under the overall guidance of the respective Line Ministries in cases where Central Assistance is also required. States have been given the flexibility to identify a few additional state-specific projects (not exceeding 5), which are very relevant for the economic development of the State.

2.7        e-Governance is being promoted through a Centralised Initiative to the extent necessary to ensure citizen service orientation, to realise the objective of interoperability of various e-Governance applications and to ensure optimal utilisation of ICT infrastructure/ resources while allowing for and adopting, as a policy, a Decentralised Implementation model. Wherever feasible, PPP is being promoted to enlarge the resource pool without compromising on the security aspects.

2.8        DIT’s role is to act as a facilitator and catalyst for the implementation of NeGP.  It provides technical assistance to them either directly or in collaboration with external professional Consultants. It also serves as a secretariat to the Apex Committee and assists it in managing the programme. In addition, it is responsible for implementing pilot/ infrastructure/ technical/ special projects and support components. DAR&PG’s responsibility is towards Generic Process Re-engineering and Change Management across all government departments.

2.9        State Data Centres (SDC)

State Data Centre (SDC) has been identified as one of the important element of the core infrastructure for supporting e-Governance initiatives of NeGP. Under NeGP, it is proposed to create State Data Centres for the States to consolidate services, applications and infrastructure to provide efficient electronic delivery of G2G, G2C and G2B services. State Data Centre would provide many functionalities and some of the key functionalities are Central Repository of the State, Secure Data Storage, Online Delivery of Services, Citizen Information/Services Portal, State Intranet Portal, Disaster Recovery, Remote Management and Service Integration.

2.10      The Scheme for establishment of State Data Centres in 29 States and 6 UTs has been approved by the Government in Jan. 2008. Proposals of 27 States/UTs for SDC have been approved by the Empowered Committee so far. RFPs from Tripura, Andhra Pradesh, Haryana, Sikkim, Goa, Gujarat, Kerala, Orissa, Maharashtra and Nagaland have been received by DIT for approval. So far, RFPs from Tripura, Andhra & Maharashtra have been approved by DIT.

2.11      State Wide Area Network (SWAN)

SWAN has been identified as an element of the core infrastructure for supporting these e-Governance initiatives and the Department of Information Technology (DIT) has earmarked a significant outlay for supporting this activity. Under NeGP, it is proposed to extend connectivity to the block level through NICNET/ State Wide Area Networks (SWANs). Govt. of India support for the establishment of such infrastructure up to the block level is being provided by DIT.  

2.12      As on October 31, 2008, SWAN has been implemented in 5 States / UTs of Haryana, Himachal Pradesh, Tamil Nadu, Chandigarh and Delhi. Implementation is at an advanced stage in another 9 States / UTs and is likely to get completed by December, 2008. Implementation is in progress in another 8 States and is likely to get completed between January, 2009 and May 2009. Bid evaluation is in progress in Rajasthan while Bid process has been initiated in another 4 States. RFP / Proposal is under review in another 5 States / UTs while Andaman & Nicobar and Goa have opted out of the scheme.

2.13 Capacity Building

The CB Scheme, approved by the CCEA on 1^st January, 2008, envisions establishment of institutional framework for State Level Strategic decision-making including setting-up of State e-Governance Mission Team (SeMTs). SeMT will be a group of people in each State mainly for providing technical & professional support to State level policy & decision-making bodies and to develop specialized skills for e-governance at the State level. CB scheme also involves imparting of specialized training, orientation programme for SeMTs and decision makers (state legislature and senior bureaucrats), knowledge sharing and bringing in international best practices and Strengthening of Training Institutions in States.

A Capacity Building Management Cell (CBMC) has bee set-up in DIT for overall coordination and implementation of CB Scheme. . The RFP process for ‘Empanelment of Agencies for providing Temporary Staffing Services for SeMTs’ and for ‘Selection of Agency for providing Recruitment Services’ is at an advance stage of implementation.

2.14 Awareness and Communication

Awareness and Communication component is being implemented with an objective to build distinctive brand of NeGP across Departments, to create awareness among citizens about the initiative & its objectives and to motivate stakeholders. The Awareness and Communications team at DIT will also create a set of communication guidelines that can be used by other Ministries/departments to design their own communications plan. Preparations are on to launch rural outreach activity very soon (Nov-Dec’08) across 5 States to spread awareness about NeGP in remote areas.

2.15 Assessment

The Impact Assessment of three State level e-Governance projects (Land Records, Property Registration and Transport) in 12 States and three National projects (MCA21, Passport and Income Tax) have has been completed. The Draft Assessment Report of these projects has been uploaded on DIT’s website.

2.16 e-Gov Standards

To ensure standards based interoperability and integration of applications across  Departments and to avoid any technology lock-ins, e-Governance Standards are being developed for Network and Information Security, Local Language, Meta Data and Data Standards for application domains, and Quality. A draft Interoperability Framework for e-Governance has been prepared. A draft e-Gov Information Security Standard has also been prepared. To ensure quality, Conformity Assessment Framework guidelines have been prepared by DIT.

2.17 Common Service Centres (CSC)

The CSC Scheme, as approved by the Government of India, envisions CSCs as the front-end delivery points for Government, private and social sector services to rural citizens of India, in an integrated manner. The objective is to develop a platform that can enable Government, private and social sector organizations to align their social and commercial goals for the benefit of the rural population in the remotest corners of the country through a combination of IT-based as well as non-IT-based services. The MMP is a part of the core & support infrastructure of NeGP.

2.18      CSC RFPs have been issued for 25 States /UTs. Of these, 23 States / UTs have completed the Service Centre Agency (SCA) selection process covering 1,02,827 CSCs. Of these 23 States / UTs, 21 States have signed the MSA with the selected SCA uptil October, 2008 covering 1,01,682 CSCs. As of October, 2008, a total of 20,558 CSCs have been rolled out in 14 States. In the remaining States UTs, action is also progressing well. The implementation of this massive project, which is unprecedented globally, is likely to be completed by end of 2^nd quarter of 2009. 

Industry Promotion:

 3.        Electronics Hardware Manufacturing :

3.1        Electronics Hardware Manufacturing continues to be a thrust area for the Government. The Special Incentive Package Scheme(SIPS) to encourage investments for setting up Semiconductor Fabrication and other micro and nano technology manufacture industries in India was announced by the Government on 21.3.2007 and an Appraisal Committee has been set up in the Department of Information Technology (DIT). A set of Guidelines was issued on 14.9.2007. The SIPS Notification as well as the Guidelines are available on DIT’s website (http://www.mit.gov.in).

3.2        The Scheme has received very positive response from prospective investors. Sixteen proposals involving an investment of the order of Rs.1,55,000 crores, over a period of 10 years covering setting up of Semiconductor fab, LCD panel manufacturing and Solar photovoltaics including polysilicon, have been received under the Scheme.

STPI

3.3        Software Technology Parks of India was established and registered as an Autonomous Society under the Department of Information Technology in year 1991 with an objective to implement STP/EHTP Scheme, set up and manage infrastructure facilities and provide other services like technology assessment and professional training.

3.4        The STP scheme is essentially an export-oriented scheme with focus on quality initiatives and facilitates export of professional services as well.  This scheme is unique in its nature in that it focuses on one product/sector i.e., computer software.  The scheme integrates the concept of 100 percent Export Oriented Units (EOUs), Export Processing Zones (EPZs) of Government of India and the concept of Science Parks/Technology Parks, as operating elsewhere in the world.  A distinctive feature of STP/EHTP scheme is that it provides Single-Point Contact Services for member units.

3.5        During the year 2007-08 three new Centres with High Speed Data Communication facility became operational at Haldia, Shillong and Patna and as of now a total of 51 STPI Centres/Subcentres are operational across the country.

Promoting Innovations

4.         Nanotechnology :

4.1        DIT started Nanotechnology Development Programme during the 10^th plan with an objective to create infrastructure for research in nanoelectronics and nanometrology at the national level and also to fund small & medium level research projects in specific areas such as nanomaterials, nanodevices, carbon nano tubes (CNT), nanosystems etc. 

4.2        Under this programme two major nanoelectronics centres at Indian Institute of Technology, Bombay and Indian Institute of Science, Bangalore with a total outlay of about Rs. 100 Crore have been set up and a project on nanometrology at National Physical Laboratory, Delhi has been initiated. Considering that creation of R&D facilities is highly capital intensive, a networked/shared resource approach wherein the major facilities are being made available to other users. For example facilities created at IISc and IITB are being made available to all other users in the country through Indian Nanoelectronics Users Programme(INUP) funded by DIT. In addition a few small and medium scale projects have been initiated in various aspects of nanotechnology across India. A digital programmable hearing aid technology has also been developed indigenously and is now being taken up for productionisation.

4.3        Three major projects in the areas of Non-Silicon based technologies for nano fabrication and nanoscale devices, MBE cluster tool based epitaxial nanosemiconductor infrastructure and nanoscale electronics for silicon plus platform have been evolved and planned for initiation.

5.   High-Performance/ Advanced Computing

5.1        High Performance Computing:  In the strategic area of High Performance Computing (HPC), C-DAC has developed in-house expertise for design and development of parallel processing technology based HPC systems, application development environments, system software tools and utilities, as well as development and porting of applications.  C-DAC’s PARAM series of HPC systems have 60 installations worldwide.  Its HPC facilities in Pune and Bangalore have enabled users to port their applications, parallelize their codes and optimize performance.

5.2        Grid Computing:  The advanced computing has given rise to a new class of problems, which were not possible to address earlier.  There is an increasing need to couple geographically separated computing resources, storage systems, instruments and sensors to effectively address the requirements of a wide range of applications.  Grid Technologies provide dependable, pervasive, secure and inexpensive access to high-end geographically distributed computational resources.

5.3        As a proof of concept of Grid computing, C-DAC has set up a nationwide grid of HPC systems named ‘Garuda’, which enables collaborative R&D among HPC user community in various sectors of Science and Engineering.  45 premier academic and R&D institutions spread across 17 cities in the country are connected over 10/ 100 Mbps high-speed links.  C-DAC’s HPC facilities as well as those belonging to partner institutions are connected on Garuda Grid network to enable pooling and sharing of these resources.  Technologies and tools to access these resources as well as develop and execute application programmes have been developed and demonstrated.   These tools and utilities along with training have been provided to Garuda Grid Partner institutions.

5.4        Garuda has also been connected with the Satellite Grid of SAC to process and analyze SAR (Synthetic Aperature Radar) data over a disaster prone region.  These studies are aimed at developing real time Decision support system for use in disaster Management.

5.5        While the main national grid project is finalized and requisite approvals of the competent authority are obtained, a foundation phase of the Garuda has been initiated to consolidate the proof of concept phase and develop one or two grid enabled applications of national importance.

6.        Technology Incubation and Development of Entrepreneurs (TIDE)

6.1        Department of Information Technology has launched a scheme for Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics & ICT to strengthen the technology incubation centers at the institutions of higher learning.

6.2        The scheme aims to nurture technology incubation and thus enable local development of Electronics and ICT products and packages in the long run.  The scheme provides financial support for nurturing the techno-entrepreneurs as well as for strengthening the technology incubation activity at the institutions.

6.3        Under the scheme, 15 TIDE centers will be supported at a outlay of Rs.23.40 crores over a period of 4 years.

7.     Multiplier Grant Scheme

7.1        Department of Information Technology has initiated a scheme titled “Multiplier Grants Scheme” to encourage collaborative R&D between industry and academics/ R&D institutions for development of products and packages.  The scheme aims to strengthen industry/ institute-linkages, encourage and accelerate development of indigenous products/ packages and bridge the gap between R&D and commercialization.

7.2        Under the scheme, if industry supports R&D for development of commercializiable products at an institution, the Government may provide financial support up to twice the amount provided by industry.  The proposals for providing financial support under the scheme are to be submitted jointly by the industry and institutions. 

7.3        The total scheme outlay is Rs. 36.0 crore including the government contribution in the form of grants-in-aid of Rs. 24.0 crore.  The duration of the scheme is 3 years. 

8.            Free/Open Source Software

8.1        A National Resource Centre for Free and Open Source Software (NRCFOSS) has been set up in Chennai  jointly with C-DAC and Anna University KBC Research Centre with an objective to contribute to the growth of Free/Open Source software in India  to Research and Development, Human Resource Development, Networking and Entrepreneurship development as well as to serve as the reference point for all FOSS related activities in the country. NRCFOSS has developed the portal www.nrcfoss.org.in using open source content management tool and reflects FOSS events in the country.

8.2        The Centre has come out with Indian GNU/Linux localised distribution termed as Bharat Operating System Solutions (BOSS). BOSS Linux Desktop Edition version 3.0 with wide Indian languages support and packages that are relevant for use in government domain has been released in DIT during September 2008.  

9.         Creating Digital Opportunity

9.1        To enable wide proliferation of ICT in Indian languages, DIT has taken a major initiative to make available Software tools & fonts in various Indian languages freely to the general public. Centre for Development of advanced computing (C-DAC) has released the CD’s for eleven constitutionally recognized Indian languages viz. Tamil, Hindi, Telugu, Marathi, Urdu, Punjabi, Oriya, Kannada, Assamese, Malayalam, and Gujarati, for free mass usage. Bengali is in the pipeline. The process of consolidation for other languages as well as release of second version of CD for some of  the languages  is currently underway.

9.2        Approximately 7 lakh free software tools and Fonts CDs have been distributed to the masses. Apart from online registration and shipment of CDs, approximately 26 lakh downloads have happened from the website. Other media of distribution includes magazines, pre-bundled software with OEM, etc.

Creating Inclusive Growth

10.       Information Technology Investment Regions(ITIR):

There is a need to develop infrastructure facilities in tier 2 and tier 3 cities, as there is little scope of building additional commercial space in the five tier 1 cities, New Delhi, Bangalore, Hyderabad, Mumbai and Chennai. An important initiative in this direction has been taken in May 2008 through IT investment Regions Policy Resolution, which could include new integrated townships.  The challenge is to add commercial office space at the estimated rate of 25 million square feet per annum and obtain commensurate expansion of business infrastructure, residential space and other amenities and facilities  every year to keep pace with the demands.

Creating Knowledge Economy

11.       National Knowledge Network

National Knowledge Commission has recommended setting up of  high-speed digital broadband network with adequate capabilities and access speed to encourage sharing of resources and collaborative research. In accordance with this recommendations, Department of Information Technology initiated  the National Knowledge Network plan scheme with the primary  objective  to provide Gigabit broadband connectivity to all institutions of higher learning and research  in the country.  An allocation of Rs.100 crore

 12.       Human Resource Development

12.1      India’s young demographic profile, complemented by a vast and growing academic system continue to add to its port of educated talent.  There is no other country that offers a similar mix and scale of human resources.  Yet some major gaps in  talent supply exist.  Several initiatives focused on skill development are being piloted to address the demand supply gap.

12.2      The Department has initiated a Special Manpower Development Programme in the area of VLSI Design and related software for generating the key-catalyst ingredient for this sector. This is being implemented through seven Resource Centres and 25 Participating Institutes.

12.3      DIT is also implementing a scheme relating to Manpower Development for Software Export Industry with a view to increasing the employability of the students. The Scheme covers Training of the Trainer’s Program, Enhancement of quality of IT education in colleges, Virtualization of Technical Education, conducting specialized short term courses in IT/ITES sector, Setting up of National On-line Test System for Graduate Engineers in Information Technology, etc. This is being implemented through nine institutions/organizations.

12.4      Regional Institute of e-Learning & Information Technology (RIELIT), Nagaland was approved for setting up in the year 2004 and started its operations from temporary premises.  The prime objective of the RIELIT is to create skilled manpower in the area of Computer Science and Information Technology and related disciplines. The Institute is currently offering several IT training programmes both in the formal as well as non-formal sectors aimed at improving the employment opportunities and facilitating availability of quality IT manpower, which will lead to growth of IT industry in the region. 

12.5      In line with the decision taken by the Committee of Secretaries a proposal for setting up of a RIELIT Centre at Tripura has been approved.  The Centre would facilitate the youth of Tripura to have easy access to education and training in the field of Computer Science and Information Technology resulting in generation of quality manpower. Govt. of Tripura has agreed to provide 15.0 acres of land to set up permanent RIELIT Centre.

12.6      DIT has approved a proposal of Govt. of Kerala to set up an ICT Academy. The ICT Academy, Kerala will focus to improve the quality of student passing out of institutions and colleges in Kerala to make them industry ready and immediately employable in IT and ITES industry.

12.7      Regional Office of DOEACC Society has been set up in Patna for the Eastern Region to undertake proactive role for promotion of the DOEACC activities, to act as interface with DOEACC Accredited institutions and students in the region.

12.8      Efforts are underway to set up new DOEACC Centres in North Eastern Region viz. Meghalaya, Sikkim, Arunachal Pradesh and in Chennai, Tamil Nadu.

13.        Review of Information Technology Act

13.1      The Information Technology Act 2000, a legal framework for transactions carried out electronically, was enacted to facilitate e-Commerce, e-Governance and to take care of computer related offences.  Over the years, with several new forms of computer crime, misuse and fraud taking place, a need was felt to strengthen legislation pertaining to information security.

13.2      The Information Technology Amendment Bill was introduced in the Parliament on 15^th December, 2006.  It was referred to the Parliament Standing Committee, which was presented its report to the Parliament.

13.3      Department of Information Technology has processed the report of the Standing Committee and has finalized its response.  

NSK/RK