|II. IT RESEARCH, DESIGN AND DEVELOPMENT
24. A High level Institutional framework will
be set up to coordinate and focus RD&D efforts in the country. This will help in
facilitating the formulation and implementation of policy framework on on-going basis for
RD&D in IT; to identify, coordinate implementation of mission mode foundation projects
in products, processes and technologies; and to monitor and steer the RD&D activities
on an on-going basis. This effort will be coordinated initially by the Government with
active participation of Industry.
The government funded RD&D
organizations (like DRDO, Space, Atomic Energy and others) will be encouraged to formulate
long term and short term IT action plan and coordinate with the above mentioned
25. Establish an Indian IT Design Council
as a non-governmental, autonomous body that would
- institute awards for excellence in R D &
D in IT;
- provide patenting assistance to developers;
- institute a "Designed with Pride, in
India" mark for IT products designed and developed in India;
26. This Mark could have different "levels" (such
as Silver, Gold, and Platinum, depending on the extent of design content) 26. Set up an
Information Technology Development Board (ITDB) as a non-governmental, autonomous body
- Identify major mission mode projects in the
country for building Information society and meeting the goals set for socio-economic
development, as also with a view to developing Indian solutions and going up the value
- Build close links, to encourage
collaborative activities, between academia, RD&D organizations and Indian IT industry.
- Fund projects to help develop technology in
- Keep a watch on global IT technology trends
and Indias competitiveness in the field.
- Establish an appropriate funding mechanism
for IT industry to draw support for RD&D.
27. A corpus of fund will be created by the
Government of India on the lines of TDB. Such a corpus fund for various funding agencies
could be through pure equity, convertibles, convertible preference shares, venture finance
etc. to the companies at the seeding stage.
28. The following measures will be taken
for the development of cutting edge manpower for RD&D:
Ensure that all undergraduate and
postgraduate colleges offer a "minor" in IT, with a view to encourage
development of IT based knowledge in various fields like medicine, commerce, economics,
law, engineering, natural sciences etc. This will minimize their migration to basic
Institute fellowships and special faculty
positions schemes with attractive remuneration to ensure that high quality manpower joins
- Create a national infrastructural research programme in
Information Technology along the lines of existing programmes in Physical, Mathematical
and Nuclear Sciences.
- To create R & D manpower and
provide research positions in selected institutions and also
fellowships for short and long durations in various
Create an appropriate funding mechanism to
encourage basic and applied research in Academia and Research organizations
To sustain R & D
programmes in academia and research bodies (At present, no funds are available for basic
research in IT-related areas.)
To support open-ended
research in IT-related areas
- Design a set of measures to attract high quality students
and faculty into IT-related areas.
- Encourage industry to set up attractive
fellowship programmes for postgraduate studies in IT-related areas
- Encourage enhancement of qualifications and
acquisition of R & D qualifications by R & D staff from the industry
- Institute a national level collaboration programme between
the academia and between the academia and the Industry.
- To support exchange programmes and
collaborative activities between the academia and the Industry
29. Establish an Institute of System-Level
Integration, which will carry out leading-edge research in SLI:
- Establish an SLI think-tank;
- Offer post-graduate degree course(s) in SLI.
- Help create an Intellectual Property (IP)
Bank in India;
- Help India become a major source of IP.
- Tie up with major semiconductor fabrication
facilities world wide, to provide prototyping/production facilities and/or license the IP.
30. An agency to evolve Framework of
standards will be set up, e.g., CMM, SPICE, ISO9000. This agency will also work for
assessment and certification for compliance to standards and processes at affordable cost.
31.. Easily accessible Patenting cells will
be set up to provide both consultancy and actual patenting/ copyrighting services to IT
32. Tool rooms and design support centers will be
established for providing modern tools to the developer community at a reasonable cost.
Further, ensure development of Indian tool sets for the above purpose. Initially the
following areas will be considered:
- Set up a Research Design & Development
and dissemination center for CAD tools, in an existing institution with a view to provide
state-of-the-art CAD tools to Indian Industry and explore global market for export of
Indian CAD tools.
- Set up educational/exploratory software
development center with the responsibility of building educational/training software for
giving advance training to scientist and engineers. Towards this end, the strategies
recommended by the WESEE of the Ministry of Defence for setting up Software Tool Rooms and
Design Support Services will be adopted.
33. Specific R&D projects will be instituted for IT
interface and IT development tools in Indian languages. These projects will be used to set
up Indian standards.
34. The following measures will be taken to boost growth of
- Allow Courier Services for imports with
customs clearance at the addressee location. Further customs duty exemptions allowed to
addressees that are EOUs or EHTPs, STPs, S-BITs.
- Exempt all IT products that have been
designed indigenously ( carrying "Designed with Pride, in India" mark), from all
duties such as CED, CST, State ST, Octroi, Customs duty, CVD, AD etc..
- Permit return of exported goods/software
unsold through distribution network or permit sale of such goods on discount in the
- Export revenues from royalty on Indian
RD&D must be made tax-free to encourage intellectual capital creation.
- RBI will authorize equity funding as well as
Collateral-free loan at preferential interest rate for RD&D activities, leading to IT
product development (as recommended for IT manufacture in the IT Action Plan - Part II) .
- Such funding will be at internationally
competitive interest rates to provide a level playing field.
- RBI will be asked to notify guidelines to
accept intellectual property as capital asset created via RD&D and be value based on
the actual expenses for manpower, material and overheads.
- Include Intellectual property at par with
goods and services and allow capitalization on the above.
- Allow stocking distributorships for imported
35. Each Department will establish area specific
Mission-mode programs, involving indigenous development and large scale deployment where
private investment is not feasible due to high risk factors, with assured procurement
commitments to the developers.
36. Purchase preference will be given in Government
procurement, to the products carrying " Designed with Pride, in India" mark, as
long as they meet the Quality and acceptance criteria.
37. The concept of National Technology Park
(NTP) will be encouraged for R&D and promotion of key technologies to support
establishment of National Information Infrastructure.
38. An Inter-department committee will be
established to formulate policy and programme to evolve/adopt national standards for
Information Technology in consultation with Bureau of Standards and will submit its report
in 90 days.
39. To enable India to be a global
competitor there is a need to enhance the velocity of business and quality of products;
Towards this end, all PSUs, R&D Institutions and Technology Support agencies will
apply techniques of resource planning and initiate time bound programmes to modernise
40. Government recognises the need to
manufacture IT products in consonance with the open system interconnect model. The
Department of Electronics will institute measures for its revival and sustenance at world
41. Appreciating the demand of rapid change
in IT industry, the Government will suitably amend Laws to enable relocation,
reorganisation and retraining in the IT industry.
42. To keep pace with the Rapid developments in the field
of IT, the Government will revise procedures for clearance of IT related projects within 6
months of application.