IT Industry and Digital India Initiatives in India - RajRAS

IT Industry and Digital India Initiatives in India The rapid growth of the IT Industry has played a pivotal role in shaping modern India, making it a global hub for technology and innovation. Under the subject Technology, the government’s Digital India initiatives aim to bridge the digital divide, promote e-governance, and empower citizens through improved digital infrastructure and services.

Previous year Questions

Year	Question	Marks
2016 Special	Discuss the Breed Improvement Programme undertaken by the Department of Animal Husbandry, Government of Rajasthan	10M
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2023	What is the National SuperComputing Mission(NSM)? Write any three salient achievements of this mission.	5M
2016	Write a note on the contribution of Dr. A.P.J. Abdul Kalam in India’s science and technology programme.	10M
2013	In which field the Nobel prize was awarded to C.V. Raman and Hargovind Khurana ?	2M

IT industry in India

Definition: The Information Technology (IT) industry encompasses all the businesses and services that involve technology, including software development, IT services, networking, and the internet.

Economic Contribution of the IT Industry

GDP Contribution

FY23 Contribution: The IT-BPM sector contributed approximately 7.5% to India’s GDP.
Future Projections: Expected to reach 10% by 2025.

Revenue

Total Revenue (FY23): Estimated at $245 billion, with:
- Exports:$194 billion.
- Domestic Revenue: $51 billion.

Employment

Total Employment: Around 5.4 million people employed in the IT sector as of March 2023, making it one of the largest private sector employers in India.

Growth and Development

1998 vs. 2023 Growth: Contribution to GDP grew from 1.2% in 1998 to 7.5% in FY23, highlighting the industry’s rapid growth.
Factors Influencing Growth:
- Strong educational framework focused on STEM (Science, Technology, Engineering, Mathematics) subjects.
- High English proficiency among the workforce.
- Government support through policies, incentives, and initiatives.

Key Players and Market Dynamics

Major IT Companies:
- Tata Consultancy Services (TCS)
- Infosys
- Wipro
- HCL Technologies
- Tech Mahindra
The industry includes both established firms and emerging startups, contributing to a dynamic and competitive ecosystem.

Global Positioning

Global IT Services Market Share: India is the largest sourcing destination, holding 67% of the global market share.
Why India?
- Cost-effectiveness compared to other outsourcing destinations.
- High-quality services and technological expertise.
- Preferred destination for offshoring by global companies.

Services Provided by Indian IT Companies

Custom Software Solutions: Includes applications, web-based software, and enterprise software.
IT Outsourcing: Call centers,Data processing, Technical support
Cloud Computing & AI Services: Companies like Infosys and TCS provide AI-driven solutions and cloud services.
Business Process Outsourcing (BPO)
- Services Provided: Customer service, Technical support, Data entry
- Global Market: India’s BPO sector is one of the largest in the world.

Evolution of IT Industry in India

1960s-1970s: Initial Foundations

Bhabha Committee (1966): Laid the foundation for IT services in India.
TCS (1967): First IT company, marking the start of software exports.
SEEPZ (1973): First Software Export Processing Zone in Mumbai.

1980s: Policy Liberalization and Support

Duty-Free Imports Policy (1972): Duty-free import of computers for software export commitment.
Software Export Promotion Council (1986): Promoted software exports and industry collaboration.
Liberalization of Import Rules: Eased access to technology for software development.

1990s: Economic Liberalization

Economic Reforms (1991): Opened the economy with:
- Reduced import duties.
- Tax exemptions for software exports.
NASSCOM’s Role: Lobbying for favorable policies (tax exemptions, reduced tariffs).

2000s: Infrastructure Development and Global Integration

STPI (1991): Established to support software exports with infrastructure and fiscal incentives.
National Policy on IT (2000): Focus on e-governance, IT education, and R&D.
Encouragement of Foreign Investment: Allowed foreign companies to establish fully owned subsidiaries.

2010s: Focus on Startups and Digital Initiatives

Digital India (2015): Focus on digital infrastructure, literacy, and e-governance.
Startup India (2016): Funding, tax exemptions, and simplified regulations for tech startups.
NGIS (2017): Incubation support for technology startups.

2020s: Continued Growth and Innovation

Atmanirbhar Bharat: Focus on boosting domestic technology manufacturing and innovation.
Emerging Technologies Focus: AI, machine learning, cybersecurity, and blockchain promoted through research and funding programs.

Challenges Faced by the Indian IT Industry

Cybersecurity & Data Privacy Risks
- Increasing cyber threats and data breaches as digital transformation accelerates.
  - → Need for stronger cybersecurity frameworks and data protection protocols.
Adapting to Rapid Technological Changes
- Staying ahead with emerging technologies like AI, Blockchain, and IoT.
  - → Constant investment in R&D and reskilling of the workforce.
Economic Uncertainty & Global Instability
- Geopolitical tensions and inflation impact IT spending and outsourcing demand.
  - → Adaptability is key to navigating shifting market conditions.
Talent Shortage & Skills Gap
- Lack of skilled professionals in advanced technologies like AI, Cloud, and Blockchain.
  - → Focus on upskilling initiatives.
Rising Client Expectations
- Clients demanding tailored, agile, and more innovative tech solutions.
Navigating Regulatory Compliance
- Complex and evolving regulations across different markets. Example: Compliance with GDPR in Europe, impacting data handling and storage.
  - → Proactive strategies to stay compliant in multiple jurisdictions.
High Employee Attrition Rates
- Example: Young employees leaving for better opportunities in tech giants.
  - → Focus on retention strategies, career development, and work-life balance.
Automation & AI’s Impact on Jobs
- Integration of AI and automation displaces traditional job roles.
  - Example: Call center jobs being replaced by AI-powered chatbots.

Government Initiatives to Promote the IT Industry

Software Technology Parks of India (STPI) Scheme (Launched in 1991)

Objective: Support the development and export of computer software and related services.
Offered tax exemptions and duty-free imports of equipment, enhancing competitiveness in global markets.

Digital India (Launched in 2015)

Objective: Transform India into a digitally empowered society and knowledge economy.
Enhanced digital infrastructure, improved digital literacy, and promoted e-governance, creating opportunities for IT companies to provide software solutions for government services.

Make in India (Launched in 2014)

Objective: Position India as a global manufacturing hub, including in the IT sector.
Attracted investments, simplified regulations, and provided incentives for establishing manufacturing facilities and research centers.

India BPO Promotion Scheme (IBPS) & North-East BPO Promotion Scheme (NEBPS) (Launched in 2016)

Objective: Create employment opportunities by incentivizing BPO operations in smaller cities.
Established numerous BPO units across various states, providing significant employment opportunities.

Next Generation Incubation Scheme (NGIS) (Launched in 2017)

Objective: Support the software product ecosystem by creating a vibrant environment for technology startups.

National Digital Communication Policy (NDCP) 2018

Objective: Advance digital infrastructure and expand broadband access.

GENESIS (Gen-Next Support for Innovative Startups) (Launched in 2020)

Objective: Nurture startups in Tier-II and Tier-III cities.
Consolidated various startup-related schemes, enhanced support through funding, capacity building, and strengthening incubators.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (Launched in 2020)

Objective: Boost domestic manufacturing capabilities in the electronics sector.
Achievements: Offers financial incentives to manufacturers and promotes innovation, reducing dependency on imports.

National Policy on Software Products (NPSP) – 2019

Objective: Develop India as a global software product hub by fostering innovation and commercialization.
Aims for a ten-fold increase in India’s share of the global software product market, creating a robust ecosystem for software product development.

Skill Development Initiatives

Programs like Skill India provide grants and funding support for research and development projects in technology sectors.

Make in India – Electronic Manufacturing and IT Hardware (Launched in 2014)

Objective: Position India as a global hub for IT hardware manufacturing.
Focused on attracting global companies to set up manufacturing units for mobile phones, semiconductors, and electronic components.

Digital India initiatives

Digital India Programme

Launched: July 1, 2015
By: The Ministry of Electronics and Information Technology (MEITY)
Objective: Transform India into a digitally empowered society and knowledge economy by ensuring access to digital infrastructure, digital literacy, and digital services.

Vision:

Digital Infrastructure as a Core Utility:
- High-speed internet as a basic utility.
- Unique digital identity for every citizen (e.g., Aadhaar).
- Mobile and banking access for all.
- Access to common service centers (CSCs) in every locality.
Governance and Services on Demand:
- Seamless integration of services across departments.
- Availability of services in real-time online platforms.
- Digital transformation of government processes and services.
Digital Empowerment of Citizens:
- Universal digital literacy.
- Availability of digital resources in regional languages.
- Easy access to cloud-based services and platforms.

9 Key Pillars of Digital India:

Broadband Highways:
- Nationwide broadband connectivity through BharatNet.
- Connecting 2.5 lakh gram panchayats with high-speed internet.
Universal Access to Mobile Connectivity:
- Extending mobile coverage to uncovered areas.
Public Internet Access Programme:
- Establishment of Common Service Centers (CSCs).
- Wi-Fi hotspots in rural areas.
e-Governance:
- Simplifying government services using technology.
- Initiatives like DigiLocker, e-Hospital, and MyGov.
e-Kranti (Electronic Delivery of Services):
- Digitizing services like education, healthcare, financial inclusion, and justice.
Information for All:
- Open data platforms for transparency and public participation.
- Social media platforms for citizen engagement.
Electronics Manufacturing:
- Encouraging Make in India for electronic goods and reducing imports.
- Incentives under Production Linked Incentive (PLI) schemes.
IT for Jobs:
- Training youth for IT and BPO sectors.
- Setting up BPOs in smaller towns and rural areas.
Early Harvest Programmes:
- IT-enabled solutions for quick impact (e.g., biometric attendance system, SMS-based weather services).

Achievements:

Digital Payments Growth:
- UPI is operational in Europe (France), UAE, Singapore, Bhutan, Nepal, Sri Lanka, and Mauritius.
- Over 8 billion UPI transactions monthly (2023 data).
Deepening Digital Penetration
- Rural internet subscriptions grew by 200% (2015-2021) vs 158% in urban areas.
- Enabled by BharatNet Project, Telecom Development Plan, and Aspirational District Scheme.
Digital Services Revolutionizing Lives:
- CoWIN, Aarogya Setu, e-Sanjeevani, GeM, and DIKSHA are simplifying tasks and impacting 1.4 billion lives.
Ease of Living through Digital Platforms
- Platforms like Aadhaar, UPI, Digilocker, UMANG,Bhashini, GeM, and DIKSHA ensure efficient access to services.
- Jeevan Pramaan: Eliminates pensioner’s physical presence.
- MyScheme: Simplifies discovering eligible schemes.
Aadhaar Integration:
- Over 1.4 billion Aadhaar users for identity authentication.
- Enabled direct benefit transfers (DBT) to eliminate leakages in subsidies.
Digital Literacy:
- Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) aims to make 6 crore rural citizens digitally literate.
Digital Healthcare:
- Launch of Ayushman Bharat Digital Mission for digital health records.
- CoWIN, Aarogya Setu, e-Sanjeevani
Online Education:
- Platforms like DIKSHA and SWAYAM ensure e-learning access.
E-Governance:
- Platforms like e-Hospital and e-Court streamline public services, making governance more efficient.
Curbing Corruption:
- Direct Benefit Transfers (DBTs) eliminate middlemen, ensuring transparency.
Start-up Ecosystem:
- India became the third-largest start-up ecosystem globally, fueled by Digital India’s tech infrastructure.
- Initiatives like TIDE 2.0, SAMRIDH Scheme, and 42 Centres of Excellence (CoEs) foster innovation.
- MeitY Start-up Hub and GENESIS (₹490 Cr) promote startups in Tier-II & Tier-III cities.
Employment Generation
- NEBPS & IBPS: Created 52,000+ jobs in the BPO sector
Global Impact
- India Stack Global: Showcasing key platforms (Aadhaar, UPI, DigiLocker, Co-Win) globally in all UN languages.

India’s Digital India Program continues to empower citizens, drive innovation, and boost governance efficiency under the principle of “Maximum Governance, Minimum Government.”

Key Initiatives Under Digital India by MeitY

Foundational Digital Services:

Aadhaar (Launched 2009, Act in 2016):
- Objective: Provide a unique 12-digit biometric and demographic-based identity to residents. → over 140 crore enrollments.
- Statutory backing provided by the Aadhaar Act, 2016.
Common Services Centres (CSCs) 2009:
- Offer government and business services digitally in rural areas through Village Level Entrepreneurs (VLEs).
- 5.84 lakh operational CSCs, 4.63 lakh at gram panchayat level.
- Rajasthan: 23,035 CSCs functional, aiding rural connectivity.
DigiLocker (2015):
- Provide a secure digital platform for storing and sharing documents.
Unified Mobile Application for New-age Governance (UMANG) – 2017:
- Objective: Provide citizens with access to government services through a mobile application.
- Access to various e-Services and bill payment services.
Digital Identity and Signatures: MeriPehchaan (SSO), e-Sign.
API Setu: Facilitates seamless data exchange with 6,000+ APIs, supporting 312.01 crore transactions.
MyGov Platform: Encourages citizen engagement with over 4.89 crore registered users.

Startups and Innovation Ecosystem:

TIDE 2.0 Scheme (2019): Supports tech startups in emerging fields (IoT, AI, Robotics) via 51 incubators, targeting 2,000 startups over 5 years.
SAMRIDH Scheme (2021): Startup accelerator initiative supporting 300 startups with a budget of ₹99 crore over 3 years.
A total of 42 Centres of Excellence (CoEs) in diverse areas of national interest have been initiated for driving self-sufficiency.
Next Generation Incubation Scheme (NGIS) (Launched in 12 Cities):
- Focuses on 300 startups in Tier-II/III cities.
GENESIS (2022): Umbrella program for startups in smaller cities emphasizing accessibility and employment growth.
Support for International Patent Protection (SIP-EIT): Up to ₹15 lakh reimbursement for patent filing by startups/MSMEs.
Parivesh Portal: Transformed environmental clearance processes into faster, simpler, and more transparent systems.
A nodal entity to interconnect tech startup infrastructure pan India a ‘MeitY Start-up Hub’ (MSH) has been set up
Open Government Data Platform

Digital Literacy & Connectivity:

Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA): Trained 6.39 Cr individuals, surpassing the target of 6 Cr.
National Knowledge Network (NKN):
- High-speed network Connecting institutions and district centers with high-speed networks, enabling collaborative research and efficient service delivery.
BHASHINI Initiative
- Bridging language barriers with digital services available in 22 scheduled Indian languages.

Digital Payments & Governance:

Unified Payment Interface (UPI):
- Adopted in 7 countries, including France, UAE, and Singapore.
e-Hospital/ORS:
- 753 hospitals onboarded with 68 lakh appointments booked via ORS.
CO-WIN Platform:
- Managed registrations and vaccinations.
e-District Mission Mode Project:
- Provides 4,671 e-services across 709 districts.

Electronics Manufacturing :

Modified Special Incentive Package Scheme (M-SIPS)
Electronic Manufacturing Clusters (EMC) & EMC 2.0
- Key Approvals: Hyderabad Knowledge City, Telangana; New Energy Park, Telangana; Tamil Nadu EMC, Karnataka EMC.
SPECS Projects
Semicon India Programme:
- Tata Electronics Private Limited (TEPL) –Approved ₹91,526 Cr for a semiconductor fab facility in partnership with Taiwan’s PSMC

AI and Digital Leadership

IndiaAI Mission:
- Development of the National AI Portal (INDIAai) as a hub for AI-related resources, startups, and educational opportunities.
- Initiation of the AIRAWAT Project:
  - A scalable AI research platform with 200 petaflops compute power.
  - Achieved the 75th position in the Top 500 Global Supercomputing List.
Formation of an Inter-Ministerial Committee for Robotics Ecosystem Development.
Global AI Leadership:
- Hosted the 6th GPAI Ministerial Council Meeting in New Delhi.
- Set to chair the Global Partnership on Artificial Intelligence (GPAI) in 2024, with a focus on ethical and inclusive AI development.

Capacity Building

Skill Development Initiatives: Two schemes for skill development in the Electronics System Design and Manufacturing (ESDM) sector approved.
FutureSkills PRIME programme: Reskilling initiative in 10 emerging technologies, including AI, IoT, Big Data, and Blockchain.

Supercomputing and Research: National SuperComputing Mission

Launched: 2015
Managed by: Department of Science and Technology (DST) & Ministry of Electronics and Information Technology (MeitY)
Led by: C-DAC & IISc
Budget: ₹4,500 crore over 7 years
Objective: Boost R&D in India via supercomputing infrastructure
Key Features:
- Infrastructure: 70+ HPC systems, 64 petaFLOPS computing power
  - Establish a network of over 70 high-performance computing (HPC) systems across the country.
  - Achieve a cumulative computing power of 64 petaFLOPS (floating-point operations per second).
  - All systems will be interconnected through the National Knowledge Network (NKN), ensuring seamless data transfer across institutions.
- Indigenous Development: The indigenous components, such as, Rudra Server Board, Trinetra Network card, Software stack, AUM HPC processor have been developed..
- Skill Development: Train 20,000 professionals in HPC
- Collaboration: Partnering with IITs, IISERs, and research centers
Achievements:
As of 2023, 33 supercomputing systems have been established at 24 locations nationwide, delivering a total capacity of 32 petaFLOPS.
Pratyush & Mihir: Two supercomputers installed at IITM (Indian Institute of Tropical Meteorology) for weather and climate predictions.
India’s top-ranked supercomputer, “Param Siddhi”, was developed under the mission, achieving a global ranking of 63rd in the TOP500 list (as of 2020).
- Other Key installations: PARAM Shivay, PARAM Shakti, PARAM Brahma, PARAM Rudra.

Strengthening Cybersecurity:

Cyber Surakshit Bharat initiative trained 250+ officials via workshops in Delhi and Kerala.

Advancements in Cloud & Data Services

National Data Centres: Expanded capacity to 100 PB; Tier-III NDC being established in Guwahati.
MeghRaj Cloud Initiative: Promotes ICT services for e-Governance with empaneled Cloud Service Providers (CSPs).

Revolutionizing Government Operations

Paperless Governance

DigiLocker: Revolutionized document management for citizens and officials.
GovDrive & Collab Files: Secure platforms for document sharing and storage.
Gov Intranet: Streamlined workflow management for government officials.

Recent Legislative Actions to secure Digital Future:

Digital Personal Data Protection Act, 2023
- Mandates explicit consent for data collection.
- Data fiduciaries must ensure data accuracy, security, and deletion post-use.
- Rights to individuals: Obtain info, request corrections, and grievance redressal.
- Penalties: ₹250 crore for data breaches.
- Establishes the Data Protection Board of India to adjudicate data-related disputes.
- Impact on Social Media: Increased user verification to reduce anonymity, trolling, fake news, and cyberbullying.
Proposed Digital India Act, 2023 (DIA) – Expected Features:
- Replaces: IT Act, 2000.
- Focus on online safety, data privacy, and ethical AI.
- Frameworks for emerging technologies like artificial intelligence and blockchain.
- Mandates Know Your Customer (KYC) for wearable devices.
- Review of online accountability and safe harbour principles for digital platforms.
National Data Governance Policy (NGDP)
- Data as public good: Provides anonymized data for academia and startups.
- Aims to improve data-driven governance and foster innovation in AI, data science, and analytics.
Telecommunications Act, 2023
- Empowers government to set cybersecurity and data encryption standards.

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