The government on Wednesday said foreign direct investment in IT and telecom sector is expected to go up by more than 100 per cent in 2006.
"A number of policy measures have been taken in the recent past, including procedural simplification and rationalisation measures. These policy measures and buoyant IT and telecommunication industry is likely to result in doubling of FDI in 2006," Communications and IT Minister Dayanidhi Maran said while inaugurating the Global Customer Meet of HCL Technologies.
Last year, the global IT and telecom giants announced investment of $8 billion in the country over a period of three to five years.
He said that hardware sector growth has kept pace with the growth in the software sector. "The consumption of electronics equipment in the country is also expected to rise. The growing semiconductor market indicates the need to concentrate on this sector," Maran said.
He said the government would strive to promote electronics and hardware manufacturing sector too.
Allaying concerns over outsourcing to India, Maran assured customers of HCL that Information Technology Act, 2000 was being reviewed in view of certain recent developments.
"Due to recent developments, particularly with respect to provisions related to data protection and privacy in the context of BPO operations, liabilities of network service providers, computer related offences and regulation of cyber cafes, the Act is being amended," he said.
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