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Technology Management | "India - Future Warehouse of IT in the World"

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India - Future Warehouse of IT in the World

by Anuranjan Misra *

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Page - 4

As a result, the Indian software industry grew from a mere US $ 150 Million in 1991-1992 to a staggering US $ 5.7 Billion (including over US $ 4 Billion worth of software exports) in 1999-2000 representing an annual growth rate of over 50 percent.

The establishment of the Telecommunications Regulatory Authority of India (TRAI) was a key step towards effective implementation of telecommunications reforms. In 1992, the mobile phone market was opened up to private operators; in 1994, the fixed services market followed; and finally in 1999, national long distance operations were opened to private competition. Prior to these reforms, the Department of Telecommunications had been the sole provider of telecommunication services.

In addition, to attract foreign direct investment, the government permitted foreign equity of up to 100 percent and duty-free import on all inputs. Government-created technology parks also offered professional labor services to clients, a cost-effective program for India since ICT labour is so inexpensive by global standards.

  • Infrastructure: Teledensity in India has reached 3.5 percent of the population. Approximately 1 percent of house-holds have fixed-line connections, compared to 10 percent in China. The mobile sector has approximately 3 million users, growing at 100 percent per annum, and is expected to outstrip the fixed-line market in the near future. The number of Internet accounts is around 1.5 million, growing at 50 percent per annum. India also has very high penetration rates of terrestrial TV, cable and radio. Voice and data wireless solutions, for both domestic and export markets, are increasingly produced and used locally.

    Access to telephones in Indian villages has improved in the last five to six years through the introduction of the Public Call Office (PCO) run by local shopkeepers. More than 60 percent of the villages in India have at least one phone. This also includes over 800,000 Village Public Telephones (VPTs). Worldtel is undertaking a pilot in four states to secure financing to upgrade the Village Public Telephones so they will soon be Internet-accessible.

    In some urban locations, India's Software Technology Parks (STPs) provide infrastructure, buildings, electricity, telecommunication facilities and high-speed satellite links to facilitate export processing of software.

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    Anuranjan Misra,
    MCA, M.Tech. (CSE), LLB,
    Currently working as Assistant Professor in Master of Computer Application Department at Academy of Business & Engineering Sciences (ABES), Ghaziabad.
    Also pursuing Ph.D. from MNNIT, Allahabad,
    Article posted on December 21, 2008.


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