9th Five Year Plan (Vol-2)

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Transport and Communication
Transport || Postal Sector || Telecom Sector || Information and Broadcasting || Information Technology || Tourism


7.5.1 Information Technology (IT) is increasingly becoming the technological infrastructure for the service sector. Information Technology broadly includes all sub-sectors dealing with the generation, transmission and utilisation of information like informatics, statistics, office automation, data processing, Management Information System (MIS), Decision Support System (DSS), Online and real-time computer applications, telecommunications, broadcasting and computer networking. IT and


Govt. of India has resolved to make India a global IT super power and a front runner in the information revolution. Towards achieving this objective, a National Task Force on Information Technology and Software Development was set up in May, 1998 with Shri Jaswant Singh, Dy. Chairman, Planning Commission as Chairperson. The Task Force submitted its first report on IT Action Plan on Development and Export of Software and Data Communication on 25th July, 1998 and the second report on Development, Manufacture and Export of IT Hardware on 3rd November, 1998. The final report concerns the citizens IT interface, content industry, IT RD and D, IT HRD and strategic policies.

The 108 recommendations of first report and 81 recommendations of second report of IT Action Plan cover a wide spectrum of issues relating to Telecom, Finance, Banking, Revenue, Commerce, Electronics, HRD, Defence and Rural Development.

The country should aim at an annual export target in excess of US $ 50 billion for computer software and a target of US $ 10 billion for computer and telecom hardware by year 2008. The compound growth rate of more than 55% between 1992-97 is planned to be increased to 80% by 2008.

The IT Action Plan has suggested conscious efforts to spread the IT culture to all walks of economic and social life of the country. An ‘Operation Knowledge’ campaign has been launched for universalising IT education and IT-based education in the country in a phased manner.

A Policy framework and industrial strategy has been designed for making the Indian IT industry strong enough to meet the demands of a zero duty regime under the WTO-ITA by the year 2003.

A Soft-Bonded IT units (S-BIT) scheme will seamlessly integrate the local and export production for maximizing the economies of scale and substitute a-posteriori controls for the existing a-priori controls so as to maximize the velocity of business.

Every secondary school, polytechnic, College and University library is planned to be given computer and INTERNET access by the year 2003

The IT Action Plan has brought about a new paradigm in setting up IT software and hardware manufacturing units for making them viable for meeting the local demands as well as exports by creating a policy ambiance and investment climate in the country comparable to those in Taiwan, Malaysia and Singapore.

allied sectors have immense potential for employment generation. It is expected to emerge as one of the largest employers of work force in the country, providing jobs to about 25% of the labour force in the long run.

7.5.2 Following recommendations of the National Task Force on IT, 1-3% of the budget of all the Ministries/Departments has been earmarked for expenditure on IT applications. It is expected to generate about one million additional jobs every year. It would also lead to increased productivity in various sectors, timeliness of implementation of projects leading to the minimisation of time and cost overruns as well as creation of entirely new enterprises like Software Export, Internet-based enterprises, Electronic Commerce etc. There has now emerged a propensity for IT-led development. The impact of IT will be especially predominant in the social sectors like health, education , judiciary and rural development.

7.5.3 The technological convergence of IT, Telecommunication and Entertainment Electronics have opened new vistas in the life of the common man. A National Information Infrastructure (NII) is evolving as a network of networks including such nation-wide computer networks as NICNET under the Planning Commission, ERNET under the Department of Electronics, HV Net and I-Net under the Department of Telecommunications in addition to an extensive Fibre Optic Telecommunication Backbone being set up by DOT. From the 40,000 route kilometers of fibre optic laid by the end of the Eighth Plan, the backbone is expected to be strengthened to more than 1,00,000 route kilometers through not only the efforts of DOT, but also Railways and the private sector.

7.5.4 The impact of the Global Information Infrastructure(GII) through Internet and low earth orbit satellite constellations will be consolidated during the Plan period with linkages to NII. An addition of over 100 Mbps external gateway capacity for such linkages is expected to spawn an estimated 5000 small and medium scale knowledge-based enterprises.

7.5.5 The Local Area Network (LAN) and Metropolitan Area Network (MAN) segment is estimated to grow to 20,000 nodes per year by the end of the Plan, prodded by the increasing induction of Wireless Data Communication equipment and Cellular Data Communication.

7.5.6 The public investment required for the above growth of Information Technology sector, especially for supporting the social sector, creation of the basic informatics infrastructure with universal access and the consequent creation of employment, is recommended to be realised by allowing every Central, Centrally sponsored and State Plan Projects to utilise up to 3 percent of their total Budget for Information Technology.

7.5.7 In order to enable India to emerge as Information Technology Super Power within the next 10 years a National Task Force on Information Technology and Software Development was set up in May, 1998 with Shri Jaswant Singh, Deputy Chairman, Planning Commission as chairperson.

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