“Information and Communication Technology can generate new opening to bridge the gap between Information haves and Information have-nots in the developing countries like India”. It is a view of the government that only Information and Communication Technology can pave the route to generate various prospects to fill the space between haves and haves-not in the society.
It is notable that, in our country there is a increased consciousness of multiple roles that ICT can play in overall growth of the country. Political leaders and policy makers have also laid stress on the significance of exploiting the profit of ICT for the overall development of the country. Central and State government, and various Civil society organizations are also convinced of the crucial role of ICT on the socio-economic revolution and hence they have launched a number of initiatives towards harnessing IT for rural development and poverty alleviations. Even the private corporate sector is increasingly working towards the domestic market as a source of revenue generation. Online retailing, Cloud Computing and E-Commerce are the major growth drivers in the sector.
Is India emerging as an ICT power?
. If globalization is a game, then India would definitely seem to be one of its winners. Moreover, some of India’s work in ICT is vulnerable to changing business strategies. Indian government has identified 25 priority sectors, development of these sectors would assure that the world shall readily come to Asia, especially to India where the democratic conditions in addition to manufacturing superiority and effective administration make it a suitable destination to invest money.
Cloud Computing :
India and China are the two major competents in cloud computing. Cost effectiveness is the important factor that drives more Indian companies to enter and utilize Cloud-based applications. Digital data in India is expected to be approximately 40,000 petabytes in 2010 and this would raise up to 2.3 million petabytes in 2020. A latest research study has revealed that the Indian Companies having private cloud will help save up to 50% of their Infrastructure cost and it also creates more than 1 lakh jobs by the year 2015. With Corporate sectors taking effective measures in leveraging the power of cloud, it would me great to monitor the growth of cloud landscape in India in the upcoming years.
Science and Technology :
“India is the epicenter of Innovation”. It has achieved remarkable success in the field of Space research. Space exploration would have been impossible without the help of ICT. We Indians first looked on to the twinkling stars, later sent missions to the moon and the Red planet Mars. The date of launch of “MAKE IN INDIA” campaign is considered to be of maximum advantage followed by successful insertion of “MANGALYAAN” an indigenously built lower cost probe in to Martian orbit and thus Mars Orbiter Mission is considered to be great boost for “Make in India” initiative. This event has thrown light on India’s success in Manufacturing, Science and Technology sectors and that too doing all this at a low cost is the highligiht of all.
IT plays a vital role to develop Agricultural research and Education in India to pave the way for improved quality of life in rural areas. There is a great need to harness ICT for community transformation but agriculturally prosperous countries like India cannot look Agriculture in such transformation. Forecasting of crops, Command Area management, Fisheries, Natural Disaster management are some of the key areas where one can see imperative impact of IT in Agriculture. With integration of technology in Agriculture, there is a momentous role for ICT to perform for overall Agricultural rural development
There is a great need to realize that “MAKE IN INDIA” Campaign is not only for Foreign investors. HealthCare industries in India must utilize the potential of India’s manufacturing industry and should produce World Class indigenous medical devices to bring quality healthcare to doorstep of poor people of the nation, quality standards of such product can also be raised as well.
Education is the major driving force of Socio-Economic development in the country. High quality education drives competitiveness and employment generation in the developing countries like India. ICT improves the quality and flexibility of Education so that learners can access knowledge at the door step from anywhere. In India, effective use of ICT for education plays a vital role in bridging Digital divide. E-Education promotes innovation and provides ample of opportunities for lifelong learning. ICT based Education increases the portability of training followed by upgradation of employee skills and thereby increasing the productivity
Manufacturing Sector :
India has the second largest manufacturing capacity. “Make in India” campaign aims at increasing the contribution of the manufacturing sector to the overall GDP of the country but only 15% of India’s GDP was contributed by Manufacturing sector in the year 2013. Manufacturing sector has been dull over the years but the “Make in India” has renewed the interest in this sector
ICT goods Import and Export in India
India’s import of ICT are surging when compared to export of ICT goods for the past few years. Exporting is a great way to increase country’s sales potential. Exporting helps in changing a idle production to work. Exporting products that are global in scope and wide range of acceptance is the best way to enjoy pure economies of sale. To increase the export sales, India needs to be quality conscious inorder to become equally efficient in the global market which is highly competitive. There is a link between ICT and business growth activities. Business markets that uses Internet to collect sales orders are proved to have higher rates of exporting and innovation, and thus paving the way to enter new export markets
Software services Exports - Type of services-wise
Defence Manufacturing :
ICT is the key for Modernization of Defence in India. It has transformed defence industry in a tremendous way. “Even a dumb bomb produced can be transformed in to Smart weapons with the aid of ICT nowadays” One of the ambitious project for Indian Defence sector is the “Make in India” initiative. India has the third largest armed forces in the world with nearly 40% of budget spent on capital acquisition, but the notable point is that 60% of Armed weapons requirements is fulfilled by imports. Indian government’s policy of promoting Self-reliance, Indigenization Upgradation of technology to develop capabilities for exports in the defence sector and country’s intensive modernization plans are some of the key reasons to invest in India. Russian President Vladimir Putin has showed his keenness to manufacture one of its most advanced helicopter Kamov 226 T in India. Although 6O% of defence purchases come from Russia, Indian government aims at cutting down its dependence on foreign vendors and thereby increases the indigenization of defence sector to be a part of “Make in India” initiative
India has nearly 250.2 Million Internet users as of June 2014. Although Indian E-Commerce markets are low when compared to other markets like United States and United kingdom, but it is growing at faster rate with arrival of large number of new entrants. Indian government has recently launched a innovative, low cost National Small industries corporation’s Online E-Commerce shopping portal to sell and buy goods manufactured by Ministry of Micro Small and Medium Enterprises. Some of the Key drivers in the Indian E-Commerce markets is to increase broadband Internet and 3G and to improve the standards of living. Small Entrepreneurs contribute 20% of total sales for online companies. Going with Modi government’s initiative “Make in India”, Many Online companies has come forward to provide platforms to support small scale manufacturers and craftsman. Major E-Commerce company Flipkart has signed a pact with the Textile Ministry to enable weavers to showcase their products as a part of this initiative.
Advantage and Disadvantage of Make in India campaign :
India is a country with availability of plenty of natural resources. Skilled Labours are easily available. With Asia transforming in to a Outsourcing hub globally, India has become a hot favourite as the manufacturing destination of many investors across the world. Indian government’s initiative to “Make in India” has boosted the Indian economy by attracting many foreign investors to invest in India. This event is considered to be very constructive and fruitful. Indian Government has also launched “Digital India” campaign as a complementary for “Make in India” initiative. India has a good administrative setup, attractive foreign policies and thus making India a wonderland for Investments.
Make in India plays an vital role in three parts through
- Import substitution
- Domestic Consumption
- Manufacturing exports.
Why Companies not manufacturing in India ?
Labour laws are still not made conductive to the Make in India campaign. China is the major competitor when it comes to manufacturing and service business. Defunct logistic facilities is the major disadvantage for India to achieve the status as a manufacturing hub. Many felt that the labour reforms and policy reforms that bring success to this campaign have not yet been implemented so far.
Solutions for Challenges faced by Manufacturing sector :
It would be good if we start with basics. Infrastructure and Human capital still needs improvement in the country. India has ranked low on the “Ease of doing business Index”. An healthy business environment would be possible only when the administrative machinery is efficient. Indian government has been stringent regarding procedural and regulatory clearance. A business friendly environment that can be created in India would be possible only through
- Easier approval of projects
- Create hasstle free clearance mechanism
- To give tax concessions to companies
- To tackle elements that affects competitiveness of manufacturing sector.
- Long term employment rate.
- Scaling our infrastructure for future years ahead
- Seeking the help of FDI, as we cannot completely invest ourselves.
- Allocation of funds to establish programmw for encouraging entrepreneurship
To make India emerge as a Manufacturing hub all unfavorable factors should be eliminated. Instead of finding ways to decrease imports it would be better to add values global production network from where the ICT goods are manufactured.Government should execute plans to train persons at panchayat level to deliver Digital literacy all over India
The entire world is looking upon India with a great interest. Capacity and benefits of technology would be fulfilled only if each and every Indian is connected to technology in order to garner opportunities in education, employment and life. This will also empower every Indian to lead a dignified life with increased purchasing power. This will also result in spin of development benefits for development of ports for facilitating exports and inland road development for transporting products for manufacturing facility. Ultimately India will get transformed itself as a economical and political super power