(BR-2)
8th August 1998

NATIONAL TASK FORCE ON INFORMATION TECHNOLOGY
AND SOFTWARE DEVELOPMENT

(Constituted under the authority of the Office of the Prime Minister of India)

Sub: Basic Background Report (BR-2) for the National Task Force on IT and SD - IT Hardware Development, Production and Export

The enclosed Basic Background Report (BR-2) is a summary compilation, classification, reconciliation, integration and technical editing of various visions and suggestions arising from:

• Proactive initiatives of the Office of the Prime Minister including vision guidelines for a Swadeshi movement appropriate to the context of making India an IT superpower in the emerging global village.
  
• The initiatives of the Planning Commission including the vision guidelines given by the Deputy Chairman, Planning Commission and the Chairperson of the National Task Force as well as the Co-chairpersons; the Ninth Five Year Plan Working Group Report on Electronics Industry, especially the reports of the Study Teams on Capital Goods, Computer Systems and Peripherals, Communication Equipment, Broadcasting Equipment, Electronic Components, Electronics Production and Exports and Micro Electronics; Minutes of the meetings taken by the Member Secretary, Planning Commission on Action Plans.
  
• Proceedings of the preparatory meetings of the Task Force on IT and SD held in the months of June and July 1998; the Task Force Sub-committee meeting chaired by the Finance Secretary and consequent meeting of the Task Force with the Finance Minister.
  
• The proceedings of the meeting of the Committee of Secretaries of 15 Departments of the Government of India under the chairmanship of the Cabinet Secretary; the proceedings of the meetings of the Group of Ministers consisting of Minister of Finance, Minister of Defence, Minister of Human Resource Development and Minister of Communications & Information and Broadcasting.
  
• Gazette Notification No. IT-TF/5/98 dated 25 July 1998 containing the 108 recommendations of the Task Force approved by the Cabinet.
  
• Report on Electronics Hardware Industry prepared by the Policy Wing of the Department of Electronics; the Report entitled, 'India IT Vision 2001 : Action Plan' dated 9 May 1998 prepared by the Information Technology Group of the Department of Electronics.
  
• Export and Import Policy : 1 April 1997 - 31 March 2002 (incorporating Amendments made upto 30 April 1998) published by the Ministry of Commerce, Government of India, available at the Web Site: http://www.nic.in/eximpol
  
• IT Plan Documents prepared by State Governments, especially Andhra Pradesh, Karnataka, Kerala, Maharashtra, Punjab, Rajastan, Tamil Nadu and Uttar Pradesh as well as discussions the Members of the IT Task Force had with the Government and Industry representatives at Mumbai, Bangalore and Calcutta.
  
• The Report 'Special Package for boosting Export of Electronics and IT related Services' dated 14 May 1998, prepared by the Electronics and Computer Software Export Promotion Council and discussions with the representatives of ESC.
  
• The Report 'India's Electronics Hardware Manufacturing Plan' (EHMP) prepared by the Electronic Components Industries Association (ELCINA) and discussions with the President of ELCINA.
  
• Discussions with the President and other Office Bearers of the Computer Peripherals Manufacturers Association (CPMS)
  
• A series of six meetings with the President and other Office Bearers of the Manufacturers' Association for Information Technology (MAIT); and two major presentations by the President and Members of MAIT in the Bangalore meeting of the National Task Force on IT and SD with the IT Hardware Manufacturers.
  
• List of written suggestions sent by the Past President of MAIT/Director of TVS Electronics Limited, the Managing Director of NDS Computers (P) Ltd, and other industrialists.
  
• List of written suggestions sent by the President of the Telecom Industries Service Association of India (TISA)
  
• List of written suggestions sent by the President of the Indian Venture Capital Association (IVCA).
  
• Suggestions from members of the Virtual Advisory Forum on Hardware of the IT Task Force who responded over the Task Force Web Site: http://it-taskforce.nic.in and the Sub-set on hardware from out of more than 10,000 suggestions received on the Web Site of the Task Force Secretariat.

The third part of the Basic Background Report (BR-3) will be brought out shortly.

The Basic Background Report (BR-2) on IT Hardware Development, Production and Export represents a paradigm shift from the earlier concepts and strategies adopted for growing IT hardware industry in India. The Industry as well as the Task Force is convinced that the past policy framework for IT Hardware Industry cannot survive the future shock of fast changing prices, technological obsolescence and an ever-expanding horizon of this highly innovative industry; without creating a proper investment climate and streamlining the procedures for minimising uncertainty, grey market, avoidable licensing and purposeless inspection. With the proposed paradigm shift in the policy framework we can be sure that the Indian Hardwre Industry can positively show proactive enterprise, 'just-in-time' alertness, market aggressiveness and inventive resilience. The national strategies suggested in BR-2 addresses these problems. Comments and suggestions are requested from RIs, NRIs and other well-wishers of India, preferably before the end of this month.

The Chairperson of the National Task Force on Information Technology and Software Development has set up a Panel on Development, Manufacture and Export of IT Hardware with the composition given in the annexure to the Background Report.

The BR-2 will form the main focused agenda for the meetings of the IT Hardware Panel. The proceedings of the Panel will form the main focused agenda for the meetings of the Task Force.