Electronics and Information Technology Annual Report 2012-13 Government of India Ministry of Communications & Information Technology Department of Electronics and Information Technology CONTENTS Overview 1 Industry Profile 8 Initiatives in Information Technology Sector 21 Technology and Application Development 38 Human Resource Development 59 Infrastructure 69 Societies 76 National Informatics Centre 94 Promotional Matters 125 Appendices 130 Electronics and Information Technology At renaming ceremony of the Department held on 19th April 2012 (from L to R): Ms. Manjula Prasher, Secretary, Posts, Sh. R. Chandrasekhar, Secretary, Telecommunications, the Chief Guest Sh. Kapil Sibal, the Union Minister for Communications & IT and Sh. J. Satyanarayana, Secretary, DeitY Demo of Mee-Seva to a foreign delegation by Sh. J. Satyanarayana, Secretary, DeitY At inauguration of Centre for e-Governance (from L to R): Dr. Rajendra Kumar, Joint Secretary, Sh. J. Satyanarayana, Secretary, DeitY, Smt. Rita Teaotia, Additional Secretary and the Chief Guest Sh. Sachin Pilot, Former Minister of State for Communications & IT Overview Overview During the year 2012-13, the continuing fragile global IT outsourcing exhibited a strong growth, in line with the economic scenario and domestic factors like widening global trend, driven by increased spend in the remote fiscal deficit and inflationary trends depressed India’s infrastructure management, application management, overall economic growth. The slowdown of the economy testing and Service Oriented Architecture (SOA) has been pervasive affecting almost all sectors. The real segments. Cloud computing, mobile computing gained GDP grew by 5.4% during the first half of the current fiscal credence this year as it offered clients access to best-in- year as against an average of 8% achieved during the last class process management at reduced capital decade. As per the latest Economic Survey the year is expenditure levels. This sector is now focusing on likely to end with a growth rate of 5% as against 6.2% in moving further up the value chain by positively impacting 2011-12. We may however, be able to recoup the growth business outcomes and customer revenues. momentum in 2013-14 but subject to the condition that the policy focus remains on revival of domestic The BPM segment that has been reinventing itself in the investment levels and job creation. Two sectors that may past few years is expected to be the fastest growing at contribute significantly to either or both of these 12.2 per cent and estimated to gross USD 17.8 billion in objectives are the IT & ITES and the electronic 2012-13. Increased acceptance of platform BPM manufacturing Sectors. solutions was the key highlight, as Indian BPM providers increasingly focused on transforming client businesses The Indian IT-BPM industry has exhibited rapid evolution through a mix of re-engineering skills, technology - in terms of expanding their vertical and geographic enablement, and new service delivery methods. markets, attracted new customer segments, transformed from technology partners to strategic ER&D, OSPD (Outsourced Software Product business partners, offering considerably wider spectrum Development) and software products segments are of services over the years. During the year 2012-13 there estimated to generate exports of USD 14.1 billion, a has been transition and transformation for the Indian IT- growth of nearly 9 per cent over 2011-12. ER&D firms are BPM industry as it continued its growth trajectory increasingly developing capabilities that are enabling despite the global economic uncertainty. them to participate across all stages of development, thereby delivering high-end services to customers. The sector is estimated to aggregate revenues of USD Disruptive technologies – cloud, mobility, social media 108 billion in 2012-13, with the IT software and services and big data/analytics – are playing a significant role in sector (excluding hardware) accounting for over USD 95 driving growth of OSPD and software products. billion of revenues. During this period, direct employment is expected to reach nearly 3 million, an addition of The year was characterised by a healthy growth 188,300 employees, while indirect job creation is recorded by Europe (including UK) and APAC. US, the estimated at 9.5 million. As a proportion of national GDP, biggest market for IT-BPM exports also continued its the sector revenues have grown from 1.2 per cent in growth momentum albeit at a slower pace. Growth this FY1998 to nearly 8 per cent in 2012-13. year was driven by emerging verticals of healthcare, retail and utilities growing at a consolidated 12 per cent, Export revenues (excluding hardware) are estimated to even as the traditional verticals BFSI and manufacturing gross USD 75.8 billion in FY2013, growing by 10.2 per recorded above industry average growth. cent over FY2012, and contributing nearly 80 per cent of the total IT-BPM revenues (excluding hardware), Domestic IT-BPM revenue (excluding hardware) is employing over 2.3 million employees. expected to grow at 14.1 per cent to gross INR 1,047 billion in 2012-13. Strong economic growth, rapid The IT services segment aggregated export revenues of advancement in technology infrastructure, increasingly USD 43.9 billion, accounting for nearly 58 per cent of total competitive Indian organisations and emergence of exports and a growth of 9.9 per cent over 2011-12. Indian business models that help provide IT to new customer IT service offerings have evolved from application segments are key drivers for increased technology development and maintenance, to emerge as full service adoption in the country. players providing testing services, infrastructure services, consulting and system integration. Within that, 1 National Policy on Electronics (NPE) 2012 The Electronic Delivery of Services Bill Unlike IT sector in which India is already a global leader, With the enactment of the Right to Information (RTI) Act, the performance of domestic electronics sector has 2005 an obligation has been placed on the central and lagged on account of specific challenges. Therefore there state governments and all public authorities under them was need for a separate sector specific strategy for to provide information to citizens to ensure transparency promotion and development of the industry. Accordingly and accountability in their functioning. The Information the Cabinet on 25th October, 2012 approved a National Technology Act, 2000 provides for legal recognition of Electronic Policy (NPE) 2012 covering a comprehensive electronic transactions for enabling citizens to set of schemes with special focus on promotion of electronically access information and public services Electronics System Design and Manufacturing (ESDM) efficiently and seamlessly. in the country. For promoting e-Governance in the country, the second The policy provides for a clear / detailed roadmap for Administrative Reforms Commission, in its eleventh development of Indian electronics sector in the coming report submitted in 2008, has recommended a clear road decade. Some of the schemes covered under the policy map with set of milestones to be outlined by government have already been cleared for implementation by the of India with the ultimate objective of transforming the Overview Cabinet i.e. Schemes like ‘Preference to Domestically citizen-government interaction at all levels to the Manufactured Electronic Goods (Preferential Market e-Governance mode by 2020 through a legal framework. Access)’ approved on 10th February, 2012, Setting up of Accordingly, it is proposed to enact the Electronic Electronic Manufacturing Clusters (EMC) Scheme Delivery of Services Act. approved on 3rd July, 2012, introduction of Modified Special Incentive Package (M-SIPS) Scheme approved The Bill was introduced in the Lok Sabha on 27th on 12th July, 2012 and Mandatory registration of December 2011. It was referred to the Departmental identified Electronic Products for meeting specified Parliamentary Standing Committee’s consideration on safety standards on 3rd October 2012 respectively. 5th January, 2012. The Committee has submitted its report to both the houses of the Parliament on 30th Besides above mentioned Schemes NPE also proposes August, 2012. The department is working on the setting up of two semi conductor wafer manufacturing recommendations of the Committee. facilities, creation of a vibrant R&D and innovation National E-Governance Plan ecosystem in ESDM Sector, creation of 2500 Ph.Ds annually in ESDM, setting up of an Electronics and ICT The National e-Governance Plan (NeGP) was approved Academy by State Governments / UTs as well as Sector on 16th May, 2006 with the vision to make all specific Skill Councils for Electronics and Telecom government services accessible to the common man in Sectors, launching a Communications and Brand his locality, through common service delivery outlets and Building Campaign” for ESDM sector etc. ensure efficiency, transparency & reliability of such The NPE aims to address various issues with the explicit services at affordable costs to realize the basic needs of objective of encouraging electronic hardware the common man. The NeGP is a multi-stakeholder manufacturing in the country with significant value programme which primarily focuses on making critical addition including various incentives required to sustain public services available and promoting rural the sector, the human resource as well as marketing entrepreneurship. It comprises