Govt setting up cloud data centers on PPP mode to help SMEs: Sibal


Highlighting the advantage of cloud computing in cutting down the cost of operations for small and medium enterprises (SMEs), Communications and Information Technology Minister, Kapil Sibal today said that the government is setting up data centers under PPP projects.

"The Government has already started setting up data centers under PPP projects, wherein thespace is provided by the Government and the investment in creating physical infrastructure is done by the private sector," he said while delivering the Inaugural Address as Chief Guest at 'The Industry - IT Summit 2013' organized by CII in the national capital today.

"We need to create an ecosystem of connectivity between various stakeholders in the economy like entrepreneurs, banking, SMEs, foreign investors for ensuring inclusive growth of the Indian economy," he added.

Sibal highlighted critical areas offering greater opportunities for IT adoption such as cloud computing, data centers, small scale sector, banking sector, semi-conductors, cyber security, etc. which will ensure better competitiveness, inclusivity and sustainability for the Indian IT sector.

Assuring the Indian industry of an enabling policy environment, the Minister stressed on the need for the Indian industry and the Government to work in tandem for realizing new horizons and opportunities in Indian IT sector.

He emphasized the need for a consistent policy framework for the IT sector from a long term perspective which will help transform the business landscape with enhanced IT adoption, and in turn create a significant contribution to India's GDP.

To realize this goal, Sibal informed that the Government has framed the 3 important national policies viz. the IT policy, the telecom policy and the Electronic System and Design Policy keeping a 20 year horizon in mind.

He added that these three policies will enable the End-users, IT service providers and Government to partner with each other and leverage information technology to achieve and maintain the desired economic growth rate.

Speaking at the summit, minister informed that the Union Cabinet will shortly take up the Electronic Service Delivery Bill for discussion through which the Government aims to deliver all public services electronically in next 8 years, offering a huge opportunity for the Indian industry.

Among the key challenges, Sibal stressed on the low level of R&D in the private sector.

He shared that of the 0.8 percent of GDP being invested in R&D, the Government's share is 0.6 percent whereas the private sector only contributed 0.2 percent.

While delivering the theme address, S Gopalakrishnan, President - Designate, CII emphasized on the adoption of IT as a transformation tool that will help India leapfrog into higher growth trajectory.

On the backdrop of presenting the CII-BCG Report on IT Enablement of Indian Business, Bhaskar Pramanik, Chairman CII National Committee on IT, ITeS and e-Commerce outlined that the Indian IT industry has been a key driver in the new knowledge economy and expected to touch USD 100 billion in FY 2013, approximately 7.5 percent of GDP.

While it will continue to accelerate growth from international market, there is an opportunity for the industry to work closely with the Government to kick start the economy, go back to the higher growth levels and help other industry verticals gain a competitive advantage in global and domestic market, Pramanik added.