India should look at H/W manufacturing seriously!

India should look at H/W manufacturing seriously!

With the onset of 3G & BWA era, we are at the advent of mobile internet. People who dont have access to devices like laptop and desktops could get hold of 3G-enabled phones and avail of 3G services or mobile internet will become common like SMS.

India is estimated to be standing at 65% of IT & ITeS, out of which US$49 billion is export oriented. This shows that in-depth IT & ICT adoption has not reached much in the country, claims the Government of India.

Talking to VARIndia, N. Ravi Shanker, Joint Secretary - IT, Government of India, said that, as of now, India is regarded as the major power in the IT & ITeS sector, especially global outsourcing with around 30-35% outsourcing coming towards India. "Indian competence in IT, ITeS sector has already been well established. Now is the time to prove our calibre in the hardware manufacturing,"he adds.

Shanker is of the view that today the country is at the throes of supply-demand gap. "We, as a country, are growing at the 8.5-9% GDP. Disposable income in the hands of the masses is increasing. Electronic goods affordability has also increased in the Indian market. Today, our demand is of the order of US$45 billion in terms of value and production within the country which includes mobile phones, networking products, TVs, etc. is of the order of US$20 billion," he shares.

The Government of India has set up a Task Force on IT and ICT under the chairmanship of Ajay Choudhary. The Task Force has given a number of recommendations, which suggest that India needs to become a manufacturing hub. "By 2020, US$400 billion worth of goods would be required in India. So, if we don't meet the projected requirements, there would be a huge demand and supply gap," claims Shanker.

Citing an example, Shanker said, "Mobile phone is a consumer item and the anticipated demand in 2020 is 240 million units of handsets which would be roughly worth US$30 billion."

"If we dont manufacture, then there would be a huge foreign exchange outflow. This is has been articulated in the Task force report," he adds further. The government is looking at the report and its suggestions very seriously.

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