Partha Iyengar, Vice President, Distinguished Analyst Regional Research Director, India, Gartner

India’s IT industry (domestic and offshore) has gone beyond needing ‘micro level’ sops in the form of tax breaks etc. in order to provide or retain its competitive advantage. It is at a point where some major macro statements and investments have to be made in the areas of infrastructure and education, the two factors that are major constraints to the industry moving along the path to becoming an IT superpower. Specific steps have to be announced in terms of continued increases in infrastructure spend, both in the urban and semi-urban areas, as well as an expanded focus on revamping primary and secondary education (PLEASE stop tinkering with the IITs and IIMs). As a close second priority, a focus on broader reforms in the area of labor laws, privatization, FDI guidelines for various industries as well as a strong focus on IP protection are required. In all of the above, there are two phases. One is the statement of intent and allocation that will come in the budget. The second, and often equally important element, is the statement of the steps the government will take to ensure the actual IMPLEMENTATION and oversight of whatever is announced, which is where there are major issues even in the implementation of past policy announcements. The mandate given to the current government is the best chance that India has to set the course firmly towards global IT relevance and dominance. If we do not achieve this in the next five years, India will spiral down towards IT obscurity (a scenario we call “Global Irrelevance”).