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August 20, 2002 | 1310 IST
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Hardware policy should take on China, says panel

BS Bureau in New Delhi

The working group on information technology for the Tenth Five-Year Plan has asked the government to work out a hardware sector policy aimed at gaining an edge over China and making India a force to reckon with in global hardware manufacturing.

"The government should evolve and put in place a national hardware manufacturing policy by December 2002 to ensure India's emergence as the leader in hardware. Gaining an edge over China by 2010 needs to be a major benchmark of this policy," the working group has suggested.

It has also proposed a comprehensive rationalisation of the tariff structure, especially for raw material, in order to take care of the zero-duty regime on finished products after 2005.

To attract foreign players, the working group has suggested a single-window clearance scheme to ensure trouble-free and timely approvals from all agencies. This will facilitate the entry of international players and attract foreign direct investment.

The working group said specific action plans should be worked out, including promoting international strategic alliances and research and development units, to ensure development of world-class products at competitive prices.

It has also suggested steps to attract foreign investment through simplifying policies and strengthening and upgrading the telecommunications and information technology infrastructure in the country. Steps should be taken to identify software development, exports and information technology-enabled services as thrust areas for wealth creation and employment generation. "New markets should be developed," the working group said in its report.

"Priority should be given to e-governance, development of Indian language interfaces, information technology for the masses, distance education, e-commerce, cyber security and human resources development," the group said.

The working group has also proposed a policy to improve the quality of manpower skills and research and development. "Post-graduate education and research in information technology should be pursued.

Research and development in emerging areas of Bluetooth technology, e-commerce, nanotechnology and bio-informatics solutions should be pursued," the report said.

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