Kalam's view on how Indian IT can earn $200 bn

"Focus on India, but also keep in sight ASEAN and African markets to sustain long-term growth in information technology. Work harder and aim higher," President A P J Abdul Kalam said while addressing the plenary session of 'Nasscom 2006: India Leadership Forum' in Mumbai on Friday.

He urged the Indian IT industry to aim at 50 per cent of the total world IT market and increase IT revenues to $200 billion by 2010.

"The present projection of Nasscom is $60 billion by 2010 and I am here to discuss how to make it $200 billion," the President said.

Listing out suggestions on achieving the target, Kalam asked Nasscom to convert the addressable market of IT and ITeS into an actual market.

The President also urged the industry to be a part of the World Knowledge Platform with joint partnerships and invest in R&D and knowledge products that will earn more revenue.

The World Knowledge Platform should work for development of biotech and nanatechnology to build a safe and prosperous world, he said.

"There is a need to develop costpeffective products so that the developments in the IT sector percolates to the less-privileged. I would like to see tablet PCs at a cost of about $100-150 so that a large majority of people can benefit from the advancement of technology," said the President.

Business process outsourcing services should be extended to Tier-II cities, he said, suggesting joint ventures with countries like Philippines and Korea in Asia for partnering in an information technology knowledge grid.

"The idea is to look East," he said, adding that these countries had the necessary potential and infrastructure.

Underscoring the need for a level playing field for small and medium enterprises in IT sectors, Kalam asked Nasscom to come forward for the same.

"Apart from inviting big guns, Nasscom should also invite small enterprises, who are facing problem of marketing their products," he said.

Suggesting setting up of village knowledge centres on the lines of Kisan Call Centres, he asked the industry to address people in rural areas through IT in different domains like travel and tourism, health care, banking and insurance.

The Indian IT and BPO sector account for just 3.5% of the total global market, this has to be raised to 15%, said the President.

Turning the attention on the GramIT project, the President said, the Byrajupura project which has been able to provide connectivity to 116 villages is an excellent example of how villages can be made knowledge centers.

How to be achieve $200 bn revenues

The President said that the Indian IT industry must aim for $200 billion revenues by 2010 and this can be achieved by following the plan below:

• Aim high and be competitive.
• Invite small and medium sector companies to participate in then growth.
• China and the Philippines are also gearing up, so stay ahead!
• Encourage innovation and creativity in IT.
• Form an ICT market for Asia, Africa and ASEAN nations.
• Create a level playing field for all.
• Focus on India and on products for the Indian and Asian markets.
• Indian's pan-African e-network has a tremendous market potential; take part in the venture with 53 nations in various aspects of technology.

And a plan for Nasscom too

• Convert the addressable market into an actual market.
• Expand BPO and IT activities in big towns to tier-two cities with a population of 1 million.
• Engage more partner nations like the Philippines and Singapore.
• Take up projects in e-biz, e-governance, etc.
• Ensure level playing field for SMEs and help them market their products.
• Set up village knowledge centres.
• Develop domain services on the lines of Kisan centres that help farmers to use IT.

With inputs from PTI

(Above) President A P J Abdul Kalam, with Maharashtra Governor S M Krishna (left) and Nasscom President Kiran Karnik (centre) at the Nasscom 2006 meet in Mumbai on Friday.

Photograph: Jewella C Miranda