A Step in the Direction Of Digital India Date:   Wednesday , October 08, 2014 The 1988 born NASSCOM (National Association of Software and Services Companies) is a trade association of IT and BPO industry. Headquartered in Delhi, this non-profit organization serves across the domains of software development, software services, software products, IT-enabled/BPO services and e-commerce. Highlighting the government\'s vision of a Digital India and giving due recognition to IT, the FM, announced a slew of measures, likely to have a positive impact. A stable and investor friendly regime is much required to boost growth – harbinger for a digital revolution, appropriate skilling of youth and development of satellite towns which can share a part of the burgeoning load currently placed on city infrastructure. Internet penetration in rural India hovers between 5 – 6 percent and remains a major cause for concern. Rs.500 crores outlay towards National Rural Internet & Technology Mission for services in villages and schools, training in IT skills and \'e-kranti\' for government service delivery will act as a catalyst to bridge this gaping digital divide. The e-Biz platform, will create an investor-friendly ecosystem in India by making all investment related clearances and compliances available on a 24/7 single portal, with an integrated payment gateway. It will augment digital inclusion with broadband connectivity upto the village level, thereby enabling improved access to services through IT enabled platforms. The last mile connectivity yet remains a major challenge and needs to be addressed immediately. Very recently, the Telecom & IT Minister has also said that more than 1.34 Lakh internet enabled centres have been set up which certainly shows a positive intent on part of the government. Majority of rural internet users are more comfortable in the vernacular language and developing services which cater to this segment will provide an opportunity for domestic IT business. Mobile penetration, on the other hand has been considerably high in villages, nearly touching 40 percent or thereabouts. Given the affordable prices of mobile handsets and accessibility in rural India, internet access through mobile devices has been significantly more than PCs. Countries which have a higher broadband and mobile penetration are better placed to leverage technology which will impact labour productivity positively. This in turn will increase GDP by several basis points. Increase in migration to cities has put insurmountable pressure on infrastructure, often making conditions unliveable and affecting urban productivity. The Rs.7060 Crores package announced to develop 100 smart cities, satellite towns and modernizing the existing ones, will pave the way for a more equitable growth. This can only happen through IT connectivity which will open up new vistas of opportunity related to e-commerce, media, on-line education amongst many others. Maintaining law and order remains one of the most challenging tasks in front of any government and the budget proposal for a digital India also extends to allied projects like the 300 Crores police modernization program. A significant portion of entrepreneurial talent resides with neo-middle class often living in the fringes of developed cities or in semi-urban areas. This budget provides a fillip to this sector in a substantial way. The Rs.10000 Crores allocated for start-ups and MSMEs is likely to be invested across the country. For nation-building to happen at a scale as is envisioned, it is imperative that we see more entrepreneurs coming up from Tier 2 & Tier 3 locations, contributing directly to the GDP and generating employment. In addition, the Finance Minister also announced the launch of a multi-skill programme called Skill India, which will emphasise on employability and entrepreneurship. Given the focus on digital literacy, this will provide an added impetus to the youth in rural parts, to get skilled and bridge the gap between haves and have-nots. That, India\'s youth population of 150 Million people who are in the age bracket 18 – 23 years, technology training through e-learning has huge potential. The Rs.100 Crores allocation for virtual classrooms is again a positive step towards the vision. NASSCOM, through its Digital Literacy Initiative recognises and supports this vision of having 1 eLiterate person in every Indian household by 2020, albeit a daunting task. With ever-mounting constant tussle between resources and the rising number of claimants, the need for digital literacy cannot be over-emphasised. The government is working to extend telecom infrastructure through initiatives like the National Optical Fibre Network (NOFN). The industry, on the other hand, has to be ready with solutions that can be rolled out using the NOFN.