The Indian Ministry of Electronics and Information Technology (MeitY) is poised to introduce a new national IT policy, a significant upgrade from the National Policy on Information Technology (NPIT) established in 2012. This upcoming policy, slated for finalization by the end of 2024, will address a range of evolving objectives crucial for the IT sector’s growth and sustainability.
A central focus of the new policy will be the enhancement of Global Capability Centres (GCCs), bolstering Engineering Research and Development (ER&D), and generating increased employment opportunities within the IT industry. Additionally, there is a strong push for the creation of innovative IT products and advancements in the export of IT services, with targets set for a shorter time frame of three to five years. This approach aims to ensure that the policy remains responsive and adaptive to the rapidly changing landscape of the IT sector.
MeitY has undertaken comprehensive consultations across five prominent IT hubs in India—Bengaluru, Hyderabad, Chennai, Pune, and Bhubaneswar—to inform the development of this policy. Insights have been drawn from over 100 leading companies in the IT field, which include both established service firms and emerging startups. A recurring theme from these discussions highlights a preference for a broader policy scope that encompasses not only IT services but also a stronger emphasis on the domestic market. Stakeholders have expressed the need for more frequent reviews of the policy to keep pace with industry dynamics.
The countdown to the formal presentation of the draft policy is underway, with expectations for it to reach Union Minister for Electronics and IT, Ashwini Vaishnaw, by late October or early November 2024. This timeline is strategically aligned with the government’s commitment to ensuring that the new policy meets current and future industry requirements.
To illustrate, consider the context of GCCs, which are critical for driving innovation and providing high-level services to global clients. An enhanced focus on GCCs could stimulate collaboration between these centres and local startups, thereby accelerating technological advancements and creating new job opportunities. The integration of ER&D initiatives into this policy framework also indicates a progressive shift toward elevating India’s status in global tech development.
Moreover, the policy’s emphasis on exports aligns with India’s broader ambitions of positioning itself as a leader in the global IT market. The government’s initiative to shorten export timelines is particularly noteworthy, as it acknowledges the need for agility in a sector that is often subject to rapid technological changes. An example can be drawn from nations where swift adaptation to market demands has resulted in a competitive edge; for instance, countries in Southeast Asia that have harnessed rapid tech growth by implementing flexible policies.
By engaging leading firms and gathering insights from diverse stakeholders, the government is laying the groundwork for a more inclusive and forward-thinking national IT strategy. This participatory approach ensures that the voices of both large corporations and smaller startups influence the direction of the policy, ultimately fostering an ecosystem that encourages innovation and resilience.
As the implications of this policy unfold, they will likely have a far-reaching impact not only on the IT sector but also on the Indian economy at large. The anticipated outcomes include increased investment in technology, enhanced job creation, and a robust framework for sustainable growth in the IT landscape.
In summary, the new national IT policy, expected by the end of 2024, promises to reflect the aspirations of India’s IT industry while catering to the fast-paced global market demands. By focusing on various critical areas such as GCCs, ER&D, and product exports, this initiative seeks to propel India’s IT sector into a new era of growth and innovation.
