'India Can Become Global Leader of IT Innovation'

by CXOtoday Staff    Oct 09, 2009

Though India has an open, transparent business environment, providing support for IT industry, IT infrastructure and R&D are two areas which need much improvement, as per the latest Economist Intelligence Unit (EIU) study.

The 2008 IT industry competitiveness index, issued by EIU, has moved India up four places as compared to last year and is now ranked at 44 in the world.

Commenting on the study report, Keshav S Dhakad, chair of the Business Software Alliance (BSA) India committee, said, "Development of a sound IT infrastructure and enhancing the R&D environment in the country still remain areas which need strong improvement.  We are hopeful that with greater government and industry focus in these critical areas, India will not only continue to be an IT power, but will become a global leader of IT innovation, products and services."

India’s true potential in near future will rest on its ability to indigenously innovate on cutting-edge technology, increase domestic investment in R&D activities, promote the value of intellectual property and drive down menace of counterfeiting and piracy, he said.
Category-wise, India has shown improvement in its R&D environment, moving from a score of 0.6, last year to 22.0 this year. It has also shown strong performance in the business environment and encouraging improvements in the legal environment. India still continues to have the advantage of human capital.

In fast growing markets like India, large pools of skilled IT employees remain a significant advantage, but uneven progress in other areas, such as IT infrastructure remains a drag on sector competitiveness, the study said. As the Internet becomes all-pervasive, slow uptake in broadband and PC penetration has had a significant impact on the IT infrastructure in India.

Robust IP protection remains essential to IT sector competitiveness. As innovation gradually becomes more important than low-cost labour to IT firms in India, improvements in IP enforcement and the overall legal environment would make the country more competitive in the IT landscape.

Within Asia Pacific, India ranks amongst the Top 10 countries, with the top three positions held by Australia, Singapore and Japan. Coordinated efforts among governments, universities and IT firms in the region are needed to improve the quality of technology training. As in India, robust IP protection and broadband penetration are some of the key concerns in the Asia-Pacific Region.

The study, now in its third year, assesses and compares the information technology (IT) industry environments of 66 economies, to determine the extent to which they enable IT sector competitiveness. The study is sponsored by the Business Software Alliance.