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Saturday, June 30, 2001

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Move ahead aggressively, IT industry told

By Our Special Correspondent

BANGALORE JUNE 29. The State Government is earnest about promoting Hardware Technology Parks (HTPs), similar to the Software Technology Parks, the Principal Secretary, Industries and Commerce, Mr. B.S.Patil, has said. The IT hardware industry has not grown significantly since the 1980s, and this could be a reason for PC penetration and Internet usage remaining low in the country, he added.

Mr. Patil was inaugurating a national symposium on "Challenges and opportunities in IT products' organised here by the Manufacturers' Association for Information Technology (MAIT), apex body of IT hardware manufacturers.

The State Government had finalised the Special Economic Zone (SEZ) project for Hassan, Mr. Patil said, which would have an initial investment of Rs. 100 crores with another Rs. 500 crores to be spent over three years. Hassan was equidistant from the major port at Mangalore and the international airport planned in Bangalore. Adequate water and power were available locally. The Government was also considering private participation in developing the zone, he said.

The new industrial policy of the Karnataka Government was realistic in projecting a growth of 10 to 12 per cent over a decade with investments of Rs 15,000 crores, he said. For helping the growth of hitech and other industries, importance was given to improving infrastructure with World Bank assistance and deregulation of industries. On the issue of developing the telecom infrastructure, there was too much hype over the "temporary inconvenience" caused in the process of laying optic fibre cables, he regretted.

There was no need for the IT industry to feel despondent because of the slowdown of growth in some country," and the industry should be positive and move ahead as aggressively as possible, Mr. Patil suggested. Karnataka would continue to focus on IT and encourage the industry.

Mr. Azim H.Premji, Chairman, Wipro Ltd., who delivered the key- note address, said hardware designing and manufacture had to grow if India was to be an IT superpower. Comparison with China was inevitable, and India lagged behind in IT spending, PC penetration and Internet usage. In the telecom sector too, China had more landlines and cellular phones in use. China had the largest investment in infrastructure in the region, and there was intense competition among local governments in attracting investors.

It was vital for India's hardware industry to grow if the country was to be self-reliant in critical sectors such as Defence and Space, Mr. Premji said. Simple measures such as reducing the Excise Duty on computers and other hardware, better IPR laws and improved interaction between industry, research and academic institutions, would help the hardware industry grow.

Mr. Vinay Deshpande, President MAIT, Mr. J.Satyanarayana, Secretary IT and Communication, Andhra Pradesh, and Mr D.Prakash, Secretary, Department of IT, Government of Tamil Nadu, chaired the technical sessions.

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