BUSINESS

Why India needs better policy environment for IT sector

By Lalit K Jha
January 28, 2015 12:28 IST

Describing the just concluded India trip of President Barack Obama as a good news for the IT sector, a top industry body here has expressed hope that the new Indian government will shape an environment in which technology trade and innovation can thrive.

The visit by President Obama has already set the stage for further policy reforms in India, said Josh Rosenberg of the Information Technology Industry Council (ITI).

"The technology sector hopes that there will be similar commitments by the Modi government to build upon the momentum of the past several months and shape an environment that supports ICT trade and growth in ICT manufacturing and investment," Rosenberg said as Obama wrapped up his three-day trip to India.

"Keeping this relationship healthy will be critical, as our countries compete and collaborate, creating innovations and opportunities globally," he said.

Referring to the renewed optimism about the relationship between the world's two largest democracies, he said this is good news for the Information and Communications Technology (ICT) sector.

"Just a few short months ago, Prime Minister Modi met with President Obama in Washington to rekindle a relationship that had gone south over the past several years, and in between the two trips, there was a flurry of activity on both sides to ensure continued momentum," he said.

Rosenberg said with ICT center stage, both sides have worked to reduce trade friction in the World Trade Organisation (WTO) and have recommitted to regular bilateral dialogues affecting technology and trade.

"The ICT sector shares the goals of Digital India, but we also recognise that the government of India will need to commit itself to establishing a better policy environment in which technology trade and innovation can thrive," he said.

The ICT sector, he said, also supports the goals of greater investment and manufacturing in India; however, the government must also recognise that both the 'Digital India' and 'Make in India' initiatives must make sense within the global supply chain.

Lalit K Jha
Source: PTI
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