DEVELOPING KNOWLEDGE-BASED INDUSTRY IN ASIA - THE INDIAN NATIONAL EXPERIENCE PRESENTATION BY S.Z. HAQUE ADDL. DIRECTOR
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1 DEVELOPING KNOWLEDGE-BASED INDUSTRY IN ASIA - THE INDIAN NATIONAL EXPERIENCE PRESENTATION BY S.Z. HAQUE ADDL. DIRECTOR DEPARTMENT OF INFORMATION TECHNOLOGY GOVERNMENT OF INDIA 1 VISION STATEMENT l Make India a leading global IT player by the year 2008 l Use IT as an enabling tool to bring equitable prosperity l Creation of Wealth through IT l Employment Generation l IT led Economic Growth 2 52/(Ã2)Ã'(3$50(17Ã2),1)250$7,21Ã7(&+12/2*<Ã',7 352$&7,9(Ã)$&,/,7$ $&7,9(Ã027,9$ $&7,9(Ã352027(5 7+(Ã,'($Ã,6Ã72 (1685(Ã63(('<Ã*52:7+Ã2)Ã,7Ã6(& ($'Ã2)Ã,7Ã72Ã7+(Ã0$66(6 (1685(Ã)$67(5Ã,7Ã/('Ã'(9(/230(17 &5($7,21Ã2)Ã:($/7+Ã7+528*+Ã,167,787,21 %8,/',1* 3 1
2 0($685(6Ã81'(57$.(1Ã72Ã$&+,(9( 7+(Ã1$7,21$/Ã*2$/,1)5$6758&785(Ã)$&,/,7,(6 0$132:(5,7Ã352)(66,21$/6 48$/,7<Ã67$1'$5'6 32/,&<Ã)5$0(:25. 63(&,$/,6('Ã25*$1,6$7,216 4 ± ADVANTAGE INDIA ➊Ã&$3$%,/,7<Ã$'9$17$*( à QG Ã/$5*(67Ã(1*/,6+Ã63($.,1* ÃÃ,7Ã352)(66,21$/6 ÃÃ&20387(5Ã*5$'8$7(6 3(5Ã<($5 ➌ÃÃ48$/,7<Ã$'9$17$*( Ã,62ÃñÃ$/0267Ã$// Ã6(,&00Ã/(9(/±ÃÃÃÃÃÃà ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃ/(9(/±ÃÃÃÃÃà ÃÃÃ7+(5(Ã,1ÃÃ,1Ã7+(Ã:25/' ➋Ã&267Ã$'9$17$*( ÃñÃÃ/2:(5Ã7+$1 '(9(/23('Ã:25/' Ã.Ã86ÇÃ3$Ã)25Ã*22' 352)(66,21$/ ➍Ã326,7,9(Ã*297 Ã/,%(5$/,=('Ã5(*,0( Ã52%867Ã,1)5$6758&785( Ã)',Ã$//2:(' 5 SIGNIFICANT ACHIEVEMENTS IT SOFTWARE (In US$ Billion) YEAR DOMESTIC EXPORT TOTAL l GROWTH ACHIEVED IN : 29% l GROWTH TARGET : 30% 6 2
3 ± 0($685(6Ã)25Ã62)7:$5(Ã(;3257 (;3257Ã25,(17('Ã6&+(0(6 Ã62)7:$5(Ã7(&+12/2*<Ã3$5.6Ã673Ã6&+(0( Ã(/(&7521,&Ã+$5':$5(Ã7(&+12/2*<Ã3$5.6 ÃÃÃÃ(+73Ã6&+(0( Ã63(&,$/Ã(&2120,&Ã=21(6 7 ±ÃÃ62)7:$5(Ã7(&+12/2*<ÃÃ3$5.6Ã673 Ãà SINGLE WINDOW CLEARANCE 100% EXEMPTION FROM PAYMENT OF DUTIES AND TAXES ÃÃà INFRASTRUCTURE INCLUDING INTERNET & LEASED LINES TO WORLD OVER 100% FDI ALLOWED FOR EXPORT AND INFRASTRUCTURE STPs 8 ± MAJOR EXPORT DESTINATIONS OF SOFTWARE & SERVICES FROM INDIA *8/) $)5,&$ Ã2&($1,& Ã$6,$à Ã(8 86$ 9 3
4 ± (;3(57,6(Ã2)Ã,1',$1Ã,1'8675<,7Ã(1$%/(' 6(59,&(6 75$,1,1* 6(59,&(6 ÃÃ 352'8&76 3$&.$*(6 0$,17(1$1&( 6(59,&(6 Ã 352-(&76 352)(66,21$/ 6(59,&(6 Ã 10 OPPORTUNITIES IN SOFTWARE Year 2008 Year 2008 Total Market Exports IT Services $ 38.5 bn $ 23 bn Software Products $ 19.5 bn $ 8 bn IT Enabled Services $ 19.0 bn $ 15 bn E-business $ 10.0 bn $ 4 bn Total $ 87.0 bn $ 50 bn Source: (McKinsey Report) 11 IT ENABLED SERVICES India currently has the best value proposition amongst all enabled services hub A recent survey projects a 66 percent growth from US$ 58mn in to US$ 100mn in
5 ± TOWARDS MAKING INDIA A LEADING GLOBAL PLAYER IN SOFTWARE & SERVICES EXPORT 352'8&7,21 (;3257Ã&855(17 Ã(;3257Ã7$5*(7 352'8&7,21 86ÇÃÃ%Q 86ÇÃÃ%Q Ã7,0(6Ã*52:7+ ñà 86ÇÃÃ%Q 86ÇÃÃ%Q (;3257Ã/($'Ã,1'8675< Ã(; Ç %,//,21 %< 13 FUTURE GROWTH PROJECTION 62)7:$5(Ã6(&725 [In US$ Billion] YEAR EXPORT DOMESTIC TOTAL GROUPS INDIAN IT GIANTS US$ Mn TCS 3142 WIPRO 1966 INFOSYS 1854 HCL 1276 SATYAM 1269 (Annual Revenues) 15 source: nasscom.org.com 5
6 0$-25Ã01&VÃ23(5$7,1*Ã)520Ã,1',$ # &,6&2Ã86$ ÆÃ+HZOHWWÃ3DFNDUGÃ86$ ÆÃ,QWHJUDÃ$*,Ã*HUPDQ\ ÆÃ2UDFOHÃ,QFÃ86$ ÆÃ)XMLWVXÃ6.25($ ÆÃ,%0Ã86$ ÆÃ'LJLWDOÃ(OHFWURQLFVÃ&RUSÃ86$ ÆÃ8QLV\VÃ&RUSÃ86$ ÆÃ6LOLFRQÃ*UDSKLFVÃ,QFÃ86$ ÆÃ6LHPHQVÃ1L[GRUIÃ*HUPDQ\ ÆÃ&LWLFRSÃ86$ ÆÃ'DQÃÉÃ%UDQGÃ6WUHHWÃ86$ ÆÃ*HQHUDOÃ(OHFWULFÃ86$ ÆÃ0DVWHFKÃ&RUSÃ86$ ÆÃ'DPVNÃ'DWDÃ(OHFWURQLFÃ'HQPDUN ÆÃ,06,Ã86$ ÆÃ&DGHQFHÃ'HVLJQÃ6\VWHPVÃ,QFÃ86$ ÆÃ0DWUDÃ)UDQFH ÆÃ$PHULFDQÃ([SUHVV ÆÃ681Ã0LFURÃ6\VWHPÃ,QFÃ86$ ÆÃ129(//Ã86$ ÆÃ&KHPÃ2LOÃ&RUSÃ86$ ÆÃ'HQHEÃ5RERWLFVÃ86$ ÆÃ,QWHUJUDSKÃ&RUSÃ86$ ÆÃ.HOWRQÃ*UDSKLFVÃ,QFÃ86$ ÆÃ0DQKDWWDQÃ$VVRFLDWHVÃ86$ ÆÃ88QHWÃ7HFKQRORJLHVÃ,QFÃ86$ ÆÃ6RQLFÃ6\VWHPVÃ,QFÃ86$ ÆÃ&DSULFRQÃ6\VWHPVÃ,QFÃ86$ ÆÃ+HDOWKÃ6FULEHÃ,QFÃ86$ ÆÃ0RWRURODÃ,QFÃ86$ ÆÃ7H[DVÃ,QVWUXPHQWVÃ,QFÃ86$ ÆÃ+XJHVÃ1HWZRUNÃ6\VWHPVÃ86$ ÆÃ%XOOÃ)UDQFH ÆÃÃ$OFDWHOÃ)UDQFH ÆÃ6*6Ã7KRPVRQ ÆÃ%ULWLVKÃ$HURQDXWLFVÃ(QJLQHHULQJÃÆÃ8. DQGÃPDQ\ÃPRUH«16 ±ÃDOE ACC Society v DOE ACC Society accredits institutions in the non-formal sector for four levels of courses namely, O, A, B and C v Students are registered centrally, on the basis of which DOEACC conducts examinations twice a year. v The module candidates for the examination have been 40% per annum and are currently over 2,75,000 numbers. v Over 800 institutes accredited under DOEACC v The Society signed MoUs with neighboring countries for providing consulting services implementing the O level course there. 17 MANPOWER/IT PROFESSIONALS FORMAL: 229 UNIVERSITIES / 10,555 COLLEGES / 389,000 GRADUATES PER ANNUM Level No of Institutions Intake MCA ,992 ( Source : Ministry of Human Resource Development, GOI Degree 863 1,43,100 Annual Report ) Diploma ,821 Total ,01, 921 NON FORMAL: Close to 10,000 institutes turning out 100,000+ coding and entry programming level professionals ( source : Dataquest India) Academia-Industry link-ups: IITs, IIITs, IISc, IIMs, IISE(CMU,USA) RECs IIT/Delhi with IBM ; IIT/Kharagpur with Cisco, IIT/Mumbai with 18 Compaq; IIT/Chennai with SUN 6
7 QUALITY STANDARDS 27 of 38 world s SEI CMM level 5 companies in India 286 ISO 9002 companies (170 Indian S/W companies) 6 companies in nasdaq 38% silicon valley start-ups by Indians 80,000 MCSE in India - equal to US and largest outside US R&D Centres by Microsoft, IBM, Cisco, Lucent, GE, SGS Thomson, CADENCE, ABB, etc Largest English Speaking Technical Manpower 19 THE POLICY FRAMEWORK lcyber Framework lfinancial sector 20 ± Cyber Framework The IT Act, 2000 v Provides legal framework to facilitate electronics commerce and electronics transaction. v Aims to recognize electronic contracts, prevention of computer crimes, electronic filing/documentation, digital signature, etc Integrated Circuits Lay out Design Act For WIPO requirements v Boost for Indian Industry on IPR front Convergence Bill - in Parliament Data Protection legislation - in process 21 7
8 E-COMMERCE & CYBER LAWS IT ACT INTRODUCED IN FACILITATES: v PREVENTION OF COMPUTER CRIMES v ELECTRONIC FILING OF DOCUMENTATION v DIGITAL SIGNATURE / PKI INFRASTRUCTURE v CONTROLLER OF CERTIFYING AUTHORITIES v PATENTS ACT AMENDMENTS v GOVERNMENT INDUSTRY PARTNERSHIP TO COMBAT SOFTWARE PIRACY 22 A Incentives for export ± Financial Sector 100% Foreign Equity 100% repatriation of benefits 100% Income Tax exemption upto the year 2010 Zero duty for import of Software including IT Enabled services Zero duty on all imports 23 ± Financial Sector (Contd) l Promoting Venture Capital l Single point taxation of profits l Pass through of profits/taxes permitted l Par status with Mutual Funds on taxation and investment l Easier entry and exit routes l Single controlling authority (SEBI) 24 8
9 IPR PROTECTION Patents Act Semi- Conductor IC layout and design Act Government Industry Partnership to combat software piracy Inter- Industry Association partnerships with other country associations : NASSCOM - ITAA 25 SPECIALISED ORANISATIONS NIC: Provides informatic service and network connectivity C-DAC: Massively Parallel Computing Technology upto 1 Teraflop STPI: Specialised Zones NCST: High-end Software Development and Training CAD, VR, OOPS, DM/DW, etc. DOEACC: Software Training and Accrediation - Over 100 K Certified 26 ±ÃNIC (National Informatics Center) NIC provides Informatics services in 550 districts of the Country. NIC has its own country-wide network for connectivity called NICNET with following infrastructure C-Band network with 800 VSATs on INSAT-2DT KU-Band network with 550 VSATs on INTELSAT-804 Broadcast VSAT Network with 1200 Nodes on INTELSAT-804 Data uplink capability of between 1.2KBPS and 256 KBPS and downlink capability between 19.2 KBPS and 12 MBPS(SCPC) 27 9
10 ± NIC (National Informatics Center) Engaged in e-governance initiative Provides professional services such as v Consulting v Software Design & Development v Networking v Internet Services v Web Site Development & Hosting v Video Conferencing v Computer Aided Design v Multimedia v Geographic Information System 28 &'$&ÃÃ&HQWHUÃIRUÃ'HYHORSPHQWÃRIÃ$GYDQFHGÃ&RPSXWLQJ v C-DAC has played a flagship role for developing and analyzing an open architecture, v high performance computing and communications technology and applications in India. v Has developed a High Capacity Parallel Processing technology based computer v Developed Computer applications in Indian languages v C-DAC offers quality training courses in advanced computing from 60 centres. 29 ±ÃÃ5(&(17Ã,1,7,$7,9(Ã7$.(1Ã%<Ã',7Ã)25 $&+,(9,1*Ã1$7,21$/Ã*2$/ SOFTWARE DEVELOPMENT TECHNOLOGY INITIATIVES BIO-INFORMATIC INTIATIVES E-REGULATION AND E-SECURITY SETTING UP TERA SCALE SUPER COMPUTING INFRASTRUCTURE - E-SCIENCE GRADE PREPARATION OF NATIONAL NANO TECHNOLOGY INITIATIVE NATIONAL DATABASE RURAL CONNECTIVITY 30 10
11 ±ÃÃ5(&(17Ã,1,7,$7,9(Ã7$.(1Ã%<Ã',7Ã)25 $&+,(9,1*Ã1$7,21$/Ã*2$/ëÃFRQWG E-COMMERCE TELE-MEDICINE SETTING UP A NATIONAL DIGITAL LIBRARY TECHNOLOGY DEVELOPMENT OF 11 MAJOR INIDIAN LANGUAGES E-GOVERNANCE E-CITIZEN E-SEWA E-LEARNING E-INFRASTURCTURE NATIONAL INSTITUTE OF E- GOVERNANCE 31 7+$1.<
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