February 20, 2002
‘22’
GOVERNMENT COMMITTED TO PROVIDING CONDUCIVE BUSINESS ENVIRONMENT : PANT
The Deputy Chairman, Planning Commission Shri K.C. Pant today called upon the captains of Indian IT sector to intensify efforts for realising Prime Minister’s endeavour of achieving US $ 50 billion IT export by 2008. He assured the Indian IT entrepreneurs that Government on its part was totally committed towards creating an improving ambient business environment in the country. He said India’s quality and competitiveness in electronic & computer software export has already been established and the need was to maintain and further advantage. Shri Pant was inaugurating two-day international IT exhibition and conferences "INDIASOFT 2002" here today.
Drawing attention to the changing attitude of international venture companies, Shri Pant pointed out that they are at last looking towards India and the need was to encourage this trend. He also pointed out that in the near future effective Indian venture capital funds would emerge. He said access to sufficient financial resources was immediate constraint in further growth of software and IT enable services in the country.
He said service sector has a very high requirement of working capital which was primarily available from banks only. The collateral base landing has limited capability in these sector and thus innovative methods of financing have to be evolved. Shri Pant however pointed out that the funding problem was likely to be eased with collateralisation of future of future income streams being adopted by the banking system.
On role of IT in development of rural areas, he said in future IT in local and rural governance has a definite role which will not only provide new opportunities to the sector but also help in improving governance and introducing greater level of transparency. He said the Prime Minister was keen in the overall upliftment of rural sector and technology could speed up the development process in these regions.
Drawing attention to the digital divide he said Government was aware of the problem and efforts were on to bridge this gap as far as possible. He said despite three fold telephone penetration during last decade only 10 to 15 percent of the population was electronically connected. A large number of these people have relatively low quality connectivity. Shri Pant said ability to tap the international market for software and IT enabled services largely depend on providing requisite infrastructure and the recent development in the telecommunication sector has proved that infrastructure will not come in the way of further growth in this sector.