Taking Karnataka's IT Hardware Growth To Next Level

by CXOtoday News Desk    Feb 19, 2014


Taking Karnataka’s IT hardware growth story to the next level, the Karnataka government joined hands with MAIT, the apex body actively representing IT Hardware sector, to organize a Workshop on “India Market Place: IT the unrealized potential”. With Karnataka being touted as the ‘hardware hub of the country’, State IT minister, S R Patil urged for a shift in policy, tax restructuring, better functioning with the union government. In this regard the Minister also stressed the need for MAIT to take an active role on government policy making.

“The stakes are high for Karnataka, already known as the Silicon Valley of India, Karnataka has to set an example to the rest of the country by promoting hardware manufacturing and enabling a manufacturing eco-system,” said Patil at the sidelines of the inauguration session while embarking on a stable policy regime through an encouraging ecosystem that will pave way for global competitiveness in the hardware manufacturing.

Anwar Shirpurwala, Executive Director, MAIT said “Karnataka has an enviable record in Information Technology; Hardware Manufacturing presents a huge opportunity and Karnataka can set benchmarks by being a hardware exporter.” He emphasized doing away with inverted duty structure and subsidies for encouraging domestic manufacturing.”

At a special session of the workshop where M N Vidyashankar, IAS, Additional Chief Secretary (Retd.), Govt. of Karnataka revealed that Karnataka was the only state in the country to have integrated e-procurement based on deliverables and outcomes, he highlighted that Karnataka was the only state to have a department of e-governance where 36 massive applications were monitored by 11 people. He highlighted that e-procurement initiative alone saved over Rs 13000 Crore of the government exchequer.

“The Indian IT hardware industry can look forward to making a substantial impact by taking some of the steps such as bringing down the hardware cost by 43% with the help of government subsidies, reducing the total cost of ownership of a PC and broadband solution,” said Alekh Tiwari, Associate Director, KPMG, who added that the need now is to provide income tax exemption to individuals against PC purchase, and promoting the purchase of PCs amongst specific segments like students and households with annual income below Rs 5 lakh.

Meanwhile, the government last month gave its approval for setting up of the first ESDM (electronic system design and manufacturing) cluster development in Electronics City, Bangalore. ESDM is the fastest growing segment in ICT and is projected to be a $400 billion industry by the end of this decade. The state government, which has come out with its own Karnataka ESDM (K-ESDM) policy, aims to capture 10% of the ESDM market in India over the next 5 years.