Act & Policies
Background

The “Information Technology (IT)” and “Information Technology Enabled Service (ITES)” sectors have emerged as engines of India’s booming economy. This sector is poised to reach US$ 70 billion software market in 2009, providing direct employment to more than 2.2 million (and nearly twice the number by way of indirect employment). India as a nation with its qualified technical work force has made a name for itself on a global scale in IT and ITES. This is, therefore, the right time for Rajasthan to make an attempt to ride on the favourable tides of a booming knowledge economy and take itself into the forefront of the country’s IT thrust.

The State Government’s primary concern is to deploy the benefits of Information Technology in such a manner as to facilitate the main objectives of e-Governance. The vision of the National e-Governance plan is to “make all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency and reliability of such services at affordable costs to realise the basic needs of the common man”. The three main pillars of the NeGP are: State Data Centre, State Wide Area Network and Common Services Centres. Rajasthan State is now engaged in aligning the e-Governance strategy to create synergy with NeGP. State Government is also undertaking a holistic approach to reengineer its business practices to facilitate a citizen-centric system of e-Governance that can overcome geographical, time and physical limitations and provide a 365x24x7, anywhere-anytime access to the common man, particularly to those people living in the rural areas. This will help achieve the broad goals of the NeGP and facilitate the common man in accessing public services through the power of technology in a transparent and hassle-free manner.

What is equally important, and what this new IT and ITES policy 2007 shall attempt to facilitate, is to encourage the private sector to make investments in the IT sector in the State. A careful analysis of Rajasthan’s present set of circumstances will reveal its strengths and opportunities as well as its weaknesses and threats. On the negative side, there is a general perception that it is a conservative state with traditional social infirmities that tend to act as a retarding factor in its growth. The comparatively low skills of its youth in communication in English and in computer associated capabilities have led to a resultant difference in cultural requirements normally associated with the metros. The emergence of other similar destinations in the burgeoning ITES sector and the fact that Rajasthan till late has been slow in capitalising on the growth of the IT sector have acted as threats for the future development of the State in this important area of the economy.

On the other hand, there are positive indications of a surge of interest in this sector in the State. The favourable response received from the new Special Economic Zone in IT that has been recently set up augers well as IT majors such as Infosys and Wipro are investing in this area. This and the proximity of the State to the National Capital Region, especially Gurgaon and Delhi, could act as a trigger for many IT corporate to invest in the State as a second centre of growth for their business activities. Further, the low cost of living and employee costs with an academically sound untapped talent pool along with the perception that they have strength in finance and accounts skills indicate the State’s potential to encourage companies to invest in Rajasthan. There are over 64 engineering colleges and about 70 business management institutes currently in the State that are working on building human capital and transforming our youth in such a manner as to grant them access to the best available job market.

In fact, the third and very vital thrust area of the IT & ITES Policy 2007 is to focus on the need for developing the human capital of our youth and propel them in the direction of this sector so that they can attain fulfilment for their aspirations and find gainful employment. The political stability of the State and the relatively better law and order scenario here also acts as a major factor when investment decisions are taken by business.

Keeping these economic and social factors in mind, it is necessary to put in place an eco system that will encourage the private sector to make investments in the State and create employment. State Government is also committed to the development of the talent pool of the youth in the State so that they are empowered to improve their capabilities and get employed in the industry. A well articulated policy, as has been attempted here, will encourage business to take a close look at the State and make the right decisions that will boost the economy, while at the same time encouraging the youth of our State to actively pursue an academic IT oriented curricula that will help them in getting an assured future.

The State Government had launched its first IT Policy in the year 2000. Since then, several steps have been taken to implement the IT Policy initiatives as envisaged in the “IT Policy 2000”. The list of various notifications issued in pursuance of the earlier policy is at Annexure A. The “IT Policy 2000” and the list of notifications can be downloaded from the website www.rajasathan.gov.in. For points that were covered in ‘IT Policy 2000’ have not been repeated in ‘IT & ITES Policy 2007’, the declaration as in ‘IT Policy 2000’ prevails over ‘IT & ITES Policy 2007’.

This Policy document attempts to take forward the earlier initiatives and to put in place the overall framework necessary for achieving the above objectives.
State Government has taken a consultative and consensual approach while framing this IT Policy document. Due inputs were taken from all stakeholders – citizens, academicians, IT industry, Government Departments and media – while working out the initiatives contained in this document. The required approvals from the various Departments were also obtained and new notifications have been issued in accordance with the pronouncements of this new IT and ITES Policy 2007. These notifications have also been appended with this document.

It is our expectation that the IT and ITES Policy 2007 will propel the State into a higher orbit of growth in this sector. The State Government shall do all in its power to ensure that the announcements of this document are fulfilled in letter and spirit.