Skilled Manpower for IT

Skilled Manpower for IT

The Government has assessed the requirement of electronic hardware in the country by 2025, and has taken significant measures to stimulate the growth of IT, ITES and electronic hardware manufacturing industry. To stimulate growth of the Information Technology and Information Technology enabled services (IT-ITES) and electronic hardware manufacturing sectors, a Task Force was set up by the Government in August 2009. As per the report of the Task Force, the demand for electronics hardware in the country has been projected to increase from USD 45 Billion in 2009 to USD 400 Billion by 2020.
Measures taken to stimulate the growth of IT, ITES and Electronic Hardware manufacturing industry in the country as under
1. Approvals for all foreign direct investment upto 100% in the IT, ITES and electronic hardware manufacturing sector are under the automatic route.
2. The Government has approved the proposal to provide preference to domestically manufactured electronic products, in procurement of those electronic products which have security implications for the country and in Government procurement for its own use, consistent with our World Trade Organization (WTO) commitments.
3. The indirect tax structure has been rationalized to the extent feasible given that 217 tariff lines covered under the Information Technology Agreement (ITA-1) of WTO are exempted from basic customs duty.
4. Software is exempted from basic customs duty.
5. Government has constituted an Empowered Committee (EC) for identifying technology and investors for setting up Semiconductor Fabrication facilities in the country.
6. Under Software Technology Park (STP) and Electronics Hardware Technology Park (EHTP) Schemes, approved units are allowed duty free import of goods required by them for carrying on export activities, CST reimbursement and excise duty exemption on procurement of indigenously available goods, as per the Foreign Trade Policy.
7. 235 IT-ITES specific Special Economic Zones (SEZs) have been notified across the country. Income tax benefit is available for units located in SEZs under Section 10AA of the Income Tax Act.
8. Under the Focus Product Scheme of the Foreign Trade Policy, exports of listed electronic products are entitled to duty credit scrip equivalent to 2% FOB value of exports.
9. Several steps have been initiated to create a Communications and Brand Building Campaign for promotion of ESDM sector in India, including conducting National level and State level workshops and bringing out an e-Newsletter with the objective of keeping the ESDM stakeholder community better informed about the policy initiatives, decisions and actions of the Government in the sector.
10. For the promotion of Research & Development, a weighted deduction of 200% of expenditure incurred on in-house R&D in case of a company engaged in the business of electronic equipment, computers and telecommunication equipment is available under the Income Tax Act.
11. The Department of Electronics and Information Technology provides funding under several schemes for promotion of R&D, including support for International Patents in Electronics & IT (SIP-EIT); Multiplier Grants Scheme and Scheme for Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics, ICT and Management.
As regards strategy adopted for capacity building in educational institutions, Centre for Development of Advanced Computing (CDAC) and National Institute of Electronics and Information Technology (NIELIT) (formerly DOEACC Society) are engaged in providing training in the formal and non-formal sectors of Information, Electronics and Communication Technology (IECT) through their various centres, franchisees/ accredited centres in the country. The Department is further expanding training capacity of these centres. In addition, training capacity in private sector is also being enhanced.
The Government has taken steps to set up a high speed (of gigabit capabilities) National Knowledge Network (NKN) to interconnect institutions of higher learning. NKN aims to facilitate creation, acquisition and sharing of Knowledge resources among Universities, Libraries, Laboratories, Hospitals and Agricultural Institutions across the country.
Further, the Department has also taken initiatives which are primarily directed towards capacity building in certain niche areas such as to meet the emerging needs of knowledge-based industry. The efforts include initiation of projects in the area of Information Security and VLSI design and Scheme of Manpower Development for Software Export Industry.
Software Technology Parks of India (STPI), an autonomous Society under the Department of Electronics and Information Technology, Ministry of Communications and Information Technology has set up 52 STPI Centres across the country, out of which 45 STPI Centres are located in smaller cities.
Department of Commerce, Ministry of Commerce and Industry vide Notification No. G.S.R.No: 597(E) dated 12 July, 2010 has amended Rule 5(b) of the SEZ Rules to relax the condition regarding minimum built-up area requirement in respect of SEZs located in B1 and B2 category cities, making them attractive for investment. The minimum built up area has been reduced to 50% of the requirement prescribed in the SEZ Rules in respect of SEZs located in B1 category cities and in respect of SEZs located in B2 category cities, it has been reduced to 25% of the area prescribed.
The Information Technology Investment Regions (ITIRs) Scheme of the Department of Electronics and Information Technology is expected to create new investment regions for Information Technology (IT)/Information Technology Enabled Services (ITES) and Electronic Hardware Manufacturing Sector away from the big cities.
This information was given in Lok Sabha today by Shri Sachin Pilot, the Minister of State, Communication and Information Technology in response to a question

pib