'Karnataka can achieve Rs 4 lakh cr revenues from IT exports by 2020'

ICT Group urges state govt to put in place a proper policy framework to tap the potential

The Karnataka Information Communication Technology (ICT) Group has estimated that the state can achieve a revenue of Rs 4 lakh crore from the ICT sector in the next eight years by initiating proper policy framework.

The ICT Group headed by TV Mohandas Pai, Chairman, Manipal Global Education Services, in its latest report submitted to state government noted that Karnataka has second largest technology cluster after the United States. The group submitted the report to state's Chief Minister Jagadish Shettar, here on Tuesday.

Pai said the government will have to provide the conducive environment in four key areas: infrastructure, entrepreneurship, education and innovation to realise this potential. Currently, the state’s revenue from IT exports is around Rs 1.35 lakh crore.

The panel noted that 400 out of Fortune 500 companies have their outsourcing operations in Karnataka with around 85 chip design firms located in the State. The ICT sector in the State currently provides direct employment to over 800,000 people and has the potential to touch above two million by 2020.

“Karnataka could be world’s largest technology cluster in the next five years provided the government implements infrastructure projects in Bangalore and other emerging cities like Mangalore, Mysore and Hubli-Dharwad,” Pai said.

The panel also made special recommendation for the hardware sector and asked the State government to create a focused electronics systems design & manufacturing (ESDM) fund of Rs 500 crore to promote such companies in the State.

Pai said the government should address the issue of infrastructure development here as it contributes 35% of India’s ICT revenues. He recommended the government to develop ‘Satellite Smart Cities’ at Hoskote, Devanahalli, Bidadi and Electronics City in PPP model and extend ‘Bangalore Capital Region’.

The government should infuse Rs 1,000 crore towards each of the emerging cities development and rest through individual connectivity funds mobilisation, Pai said.

He said the government should clear all pending IT projects within next 90 days.

The panel sought to push the benefit of the ICT sector to cities outside of capital Bangalore. It noted that some of the cities like Mysore, Shimoga, Hubli-Dharwad should be developed with government intervention to develop technical infrastructure like state data centres, communication hubs, back office operations etc. “Such specialised infrastructure will attract technical talent to these cities,” Pai said.

To create the buzz around the ICT industry in the State, the panel noted that there is a need to create “Karnataka Brand Equity Fund” and reposition Brand Bangalore in the current scenario.

In the area of education, the panel has made certain wide ranging recommendations. Pai said that students in all government schools and colleges need to be provided with free tablets with content to improve the quality of future technical manpower.