Govt. plans interface with IT sector

By Sandeep Dikshit

NEW DELHI, JULY 15. In a display of its sincerity towards improving the health of the neglected IT hardware sector, the Union Government is planning an exclusive interface with the leading entrepreneurs in this sector in the first week of August. The meeting with IT hardware sector managers would precede the more high profile and software-dominated conference of the National Advisory Council on IT (NAC-IT) which is also planned in the same month.

The plan to hold a hardware sector-oriented interface reflects the increasing realisation about the necessity of a thriving hardware sector in both the Government and the industry. Till recently, there was no representation for the hardware sector in the NAC-IT. Amends were made recently when the Manufacturers Association of Information Technology (MAIT) was given a slot but its representative is still to attend a meeting.

Another indication about upgrading of this sector's importance comes from the Government's intention for a full-fledged discussion with people who are directly involved instead of limiting the discussion in the software sector-heavy NAC-IT.

Official sources said the Ministry of Information Technology has been asked to identify the leading entrepreneurs in the hardware sector. This may not be an arduous task considering the fact that there are not many of them around. The numbers could swell if Ministry officials consider the thriving community of IT peripheral manufacturers, some well known in India such as Microtek and some who entirely export their goods such as Tandon & Co.

Sources said the Government would be expecting ``concrete and workable'' proposals for improving the health of the IT hardware sector. For instance, the IT hardware industry has been pressing for lower duties on some components. However, many of the components are open for dual use, that is, some other sectors could also take advantage of the lower duty. In this case, the Government wants the industry to take the lead and provide a check-list of items that are of dual use. In the past, a proposal of this nature from the Ministry of Information Technology was struck down by the North Block because many of the items could be used by other sectors.

The need for accelerating reforms in the hardware sector has been well documented. India is committed to establishing a zero duty regime for IT products in less than two years. The set of 13 problems affecting this sector have been making the rounds of Ministries, corporate boardrooms and industry associations for close to a decade but there has been no meaningful attempt at an across-the-board solution.

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