Develop base for hardware sector: industry

By Our Special Correspondent

CHENNAI, SEPT. 13. Even as the Chief Minister, Ms. Jayalalithaa, today reiterated the State Government's continued commitment to foster information technology and biotechnology, IT industry leaders called for developing a base for the hardware sector as the next milestone.

Inaugurating Connect 2001, a four-day international exhibition and two-day international conference devoted to IT, Communication Technologies and Bioinformatics, organised by the Confederation of Indian Industry-Southern Region (CII-SR) in partnership with the State Government at the Chennai Trade Centre, Ms. Jayalalithaa said Tamil Nadu offered ``progressive and growth- oriented policy initiatives,'' excellent physical and social infrastructure and top class human resource at a reasonable cost ``besides a proactive government as far as IT is concerned.''

The joint sponsorship of Connect 2001 was one more example of the ``continuing commitment of the Government to foster fruitful partnerships between public resources and private enterprise which would accelerate our development efforts.''

The Chief Minister cited the flow of foreign direct investment to Tamil Nadu during June 2001 (at $ 43 million), the highest level among States for the month, ahead of $ 32 million in Maharashtra and $ 29 million in Delhi) as an ``attestation of good governance'' since she assumed office. ``I assure you that this happy transformation of the industrial climate in Tamil Nadu from its sluggish pace during the previous regime to a rapid pace after my taking over the reins of the government will continue in the future also.''

Prof. Jeffrey Sachs, director, Centre for International Development, Harvard University, in a recorded video conference telecast on the occasion, said he was working on a project jointly with the Tamil Nadu Government and the IIT, Madras, to exploit the potential of IT in improving health delivery services in the State. The ``new economy'' (comprising IT, communications and entertainment) remained as much a reality as before, despite the cyclical downturn faced by the IT industry in the U.S. The scope for application of IT would only increase in future, as it had been evident in recent times in the case of biotechnology, Prof. Sachs said.

Dr. F.C. Kohli, chairman, Tata Consultancy Services, said the IT industry in India would develop mainly on the basis of its expansion in the domestic market, which in turn would drive its exports, unlike as at present when it was essentially export- driven. Highlighting the scope for developing specialised IT products to serve specific domestic customer needs, Dr. Kohli said emphasis should be placed on developing the engineering segments of IT as distinct from the programming segments.

Also, as suggested by a Central Government task force, of which he was member, leading international companies in the hardware sector should be invited to set up production capacities in the country.

Mr. S. Mahalingam, chairman, CII-Southern Region, said as the domestic market needs for IT expanded, there would be demand for a lot more of computer hardware. ``Software needs hardware and therefore we should address promotion of the computer hardware industry,'' he said. He suggested to the Chief Minister that she consider this aspect in planning for the ambitious TIDEL-II project as a Knowledge Park. He also suggested that the State ``go beyond IT Parks to IT Townships which could serve the needs of a globally-oriented industry.''

The CII-SR chairman sought the participation of the State Government in an innovative programme launched by the CII to bring functional literacy (newspaper reading capability) through a 10-week adult literacy programme.

Mr. Arun Jain, chairman of the Connect 2001 Steering Committee, said the retention of the IT portfolio by the Chief Minister, the announcement of a Knowledge Park in her government's budget, progress on Phase-II of TIDEL Park and the signing of an MoU with Cornell University, U.S., for giving impetus to biotechnology had all ``sent positive signals and uplifted business sentiment.''

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