Infrastructure must for IT growth- Nasscom

By agencies   |   Wednesday, 09 February 2005, 20:30 IST
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MUMBAI: Poor infrastructure and unavailability of quality manpower will act as barriers in growth of the IT sector, Nasscom today said. The technology industry body also emphasized on the need for Indian IT companies to develop innovative technologies and products to compete with leading players globally. "We need massive investments to boost infrastructure for the IT industry in the country. This is very critical for the growth to happen on a sustainable basis," Nasscom president Kiran Karnik said. "We also need to address issues related to availability of a large base of quality professionals. There is also a need to create an ecosystem for innovation in the industry. "The ecosystem should address all the issues relevant to the industry, right from funding issues to marketing, infrastructure, and staffing," he added. Karnik asked the government to increase expenditure on the usage of IT and IT-enabled services, including e-governance, to give a boost to the growth of the industry. "Just allocating money is not enough. It should be spent wisely and if as an indication of the government's intent it enhances allocation for the IT services usage, we will certainly welcome the move," he added. The sector has created a number of jobs and has led to the growth of tertiary businesses like transportation and real estate, it added. "Some of the lesser observed impacts of the IT revolution include the evolution of e-governance and the potential it holds for narrowing the digital divide between urban and rural India," said the Nasscom report. He said it is estimated that in fiscal 2004-05, the Indian IT-ITES sector will have contributed to creating a demand for nearly 12,500 passenger cars, over 80,000 two-wheelers and over 150,000 mobile phones subscribers.