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Report of the Working Group on Information Technology Sector

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Report of the Working Group on Information Technology Sector Report of the Working Group on Information Technology Sector Twelfth Five Year Plan (2012 – 17) Government of India Ministry of Communications & Information Technology Department of Information Technology Twelfth Five Year Plan (2012 – 17) Information Technology Sector Government of India Ministry of Communications & Information Technology Department of Information Technology Foreword Information Technology sector has been one of the key drivers for faster and inclusive growth in the Eleventh Five Year Plan. It has contributed immensely to the development of Indian economy. India has become a global power house in software and software services sector. Over the years various initiatives have been taken in the Information Technology sector to foster innovation, improve delivery of e-Services to citizens and bring about profound change in the way business is conducted and the way Government works. Information Technology has tremendous potential for the future of India. In view of the overall priorities of the Government in the 12th Five Year Plan a focused and coordinated push in the IT sector during 12th Plan period will help India achieve faster, sustainable and more inclusive growth. Accordingly the vision and mission for IT sector for the Twelfth Plan will be on e-Development of India through a multi pronged strategy of e-Infrastructure creation to facilitate and fast track e-governance, promotion of Electronics hardware manufacturing & Information Technology – Information Technology Enabled Services (IT-ITeS) Industry, providing support for creation of Innovation / Research & Development (R&D), building knowledge network and securing India’s cyber space. In the context of preparation of the Twelfth Five Year Plan (2012-17), the Government has constituted a Working Group on Information Technology sector to make recommendations on the various policy matters to formulate the Twelfth Five Year Plan for Information Technology Sector. This report is the result of efforts of the Members of the Working Group drawn from a cross section of the IT community and seven specialized, subject specific Sub-Groups. I would like to thank all members of the Working Group and Sub-Groups for their valuable inputs and officers of Economic Planning Division of DIT for preparing this Report. R. Chandrashekhar, Chairman – Twelfth Plan Working Group on Information Technology & Secretary, Department of Information Technology Preface In the context of the formulation of Twelfth Five Year Plan (2012-17) for Communication and Information Sector, the Planning Commission had constituted a Working Group on Information Technology under the Chairmanship of Secretary, Department of Information Technology vide O. M. No. M- 13040/29/2011-CIT&I, WG (DIT), dated 21st June, 2011. The Working Group had 37 Members drawn from various Government Departments and Organizations, Industry Associations, Academia and Industry. The Terms of Reference of the Working Group are given in the Appendices. For getting a wider participation from different Industry Sectors, Industry Associations and Academia, Experts and other Intellectuals, the following seven Sub-Groups were constituted: 1. e-Government Chairman – Shri Rajeeva Ratna Shah, Ex-Secretary, Government of India 2. e-Learning Chairman – Prof. N. Balakrishnan, Associate Director, IISc, Bangalore 3. e-Security Chairman – Shri N. Sitaram, Distinguished Scientist & Former CC (R&D), DRDO 4. e-Industry (Electronics Hardware Industry) Chairman – Shri Ajai Chowdhry, Chairman, HCL Infosystems Ltd. 5. e-Industry (IT-ITeS Industry) Chairman – Shri Som Mittal, President, NASSCOM 6. e-Innovation / R&D Chairman – Prof. Ashok Jhunjhunwala, IIT-Madras 7. e-Inclusion Chairman –Shri Kiran Karnik, Ex-President, NASSCOM The Terms of Reference and Composition of various Sub-Groups are given in the Appendices of the Report. The reports of the Sub-Groups are included in this Report. CONTENTS Page No. 1. Executive Summary 1 Sub – Group Reports 2. e-Government 8 3. e- Learning 56 4. e-Security 95 5. e-Industry (Electronics Hardware) 109 6. e-Industry (IT-ITeS) 163 7. e-Innovation / R&D 192 8. e-Inclusion 238 9. Appendices 258 Executive Summary The global Information Technology sector has made a remarkable progress in the last decade. It has transformed the world, enabling innovation and productivity increases, connecting people and communities, and improving standards of living and opportunities across the globe. While changing the way individuals live, interact, and work, IT has also proven to be a key precondition for enhanced competitiveness and economic and societal modernization, as well as an important instrument for bridging economic and social divides and reducing poverty. The pace of technological advance is accelerating and ICT is increasingly becoming a ubiquitous and intrinsic part of people’s behaviours and social networks as well as of business practices and government activities and service provision. These transformations will continue to move human progress forward by further leveraging IT’s positive social, political, and economic impact on government, enterprise, and civil society alike. Global sourcing trends Worldwide technology products and services related spend is estimated to reach USD 1.6 trillion in 2010 with emerging verticals and emerging geographies, in addition to US, driving the growth. IT services spend increased by 1.4 per cent in 2010, within which IT outsourcing grew by 2.4 per cent. Within IT outsourcing, global sourcing grew by 10.4 per cent in 2010, validating the industry’s integral position in service delivery chain. Global Electronic Industry trends Worldwide, the electronics industry is one of the most flourishing and extremely diversified sectors, growing at a rapid pace with the invention of innovative technologies and growing customer inclination towards electronic goods and services. The industry has been experiencing phenomenal and remarkable changes over the years, and is being distinguished with other industries by way of technological developments. The key segments of the electronic industry are electronic components industry, computer and office equipments, telecommunications, consumer electronics and industrial electronics. Production and Exports World electronics production is estimated to be US $ 1.5 trillion in 2009 and World Electronics Exports are estimated at US $ 1.3 trillion in 2009. Telecom and data processing equipments are the two largest segments accounting for 25%, and 21%, respectively, of the total world electronics production in the year 2009. Industrial and medical electronics accounted for 18% share, and audio-video equipments accounted for 15% share in world production of electronics. Automotive (8%), aerospace & defence (7%), and home appliances (6%) are other sub-sectors in electronics production. Until 2013, the total word electronics production is expected to grow at a CAGR of 2.7%. 1 Indian IT-BPO performance The Indian IT-BPO sector is estimated to aggregate revenues of USD 88.1 billion in 2010-2011, with the IT software and services sector (excluding hardware) accounting for USD 76.2 billion of revenues. During this period, direct employment is expected to reach nearly 2.5 million, an addition of 240,000 employees, while indirect job creation is estimated at 8.3 million. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in 1997-1998 to an estimated 6.4 per cent in 2010-2011. Its share of total Indian exports (merchandise plus services) has increased from less than 4 per cent in 1997-1998 to 26 per cent in 2010-2011. The major findings of the seven Sub- Groups constituted for formulation of 12th Five Year Plan are as under: e-Government The National e-Governance Plan (NeGP) with a vision to make all Government services accessible to the common man in his locality, through common service delivery outlets, and ensure efficiency, transparency, and reliability of such services at affordable costs is an initiative of the Government of India. NeGP is a program where the Department of Information Technology plays the role of a catalyst while the actual implementation of the projects is with the respective Ministries and Departments. Under the programme robust e-infrastructure is being created to facilitate deployment of ICT solutions by various Departments and state Governments. Besides, there are a number of Mission Mode Projects (MMPs) which have a high citizen interface. Significant progress has been made in the implementation of the core infrastructure and also in most of the Mission Mode Projects. 27 SWANs and 14 State Data Centres are already operational. The State Service Delivery Gateways (SSDGs) have been implemented in 2 States. For making public services available to citizens on anytime, anywhere basis, Department of Information Technology (DIT) have established around 96,000 Common Services Centres across the country as web enabled outlets to access e-Governance services. Under the Capacity Building Scheme, the State e-Mission Teams (SeMTs) have been setup in 30 States and over 700 Government officials have been trained in STeP trainings. Standards have been laid down in the areas of open standards, biometric standards, metadata & data standards, localization and Language Technology Standards etc. e-District project has been implemented in 20 districts. Significant progress has also been made in delivery of services identified under various Mission Mode Projects. In the twelfth Five Year Plan, Department of Information Technology
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