UK Trade and Investment (UKTI), describe India’s role in the global information market as one of leadership. The UK government’s trade and investment arm said, “India has entered into a global leadership position by transforming a £2bn sunrise industry into a £30bn IT powerhouse over the last decade." UKTI points to exceptional sector growth figures, within the IT industry in India, of around 11% year on year over the past ten years.
In India, information and communications technology is growing faster than anywhere else in the world and is expected, say UKTI, to grow to be the second (to China) biggest telecoms market by the end of 2011. A quick dip into telecom industry statistics shows a forecast of 560 million mobile phone users by 2012, with a further 15 million being added each subsequent month.
Incentives to Invest in India’s ICT Market?
India’s membership of the World Trade Organisation (WTO) and its subsequent signing of its Information Technology Agreement (ITA) have meant an abolition of a number of import tariffs. Consequently the Indian government sanctions the duty-free import of a range of IT products.
In September 2010, the UK India Business Council, which is backed by UK Trade and Investment, revealed plans for the Enabling Innovation India programme. The three-year plan is specifically designed to increase ICT-related bilateral trade and investment between India and the UK.
The ITA and the Enabling Innovation India programme are only two of a number of initiatives in place to ensure that the sub-continent remains an attractive place for UK companies to do business and for India to do business in the UK.
ICT Business Opportunities in India
While telecoms remain high on the list, UKTI has identified a number of other ICT business opportunities in India. They include:
E-Healthcare
- Hospital information systems
- Data management systems
- Wireless technologies
E-Governance
- The Unique Identity Project
Education IT
- IT tools for student services
- Educational aids
- IT tools for delivering education
Despite India’s high ICT growth rates, some of the World Bank key indicators show that not all the required business infrastructure, needed to support the high technology sector, is in place.
In 2011, India is rated number 134 (out of 183 economies) of the World Bank’s authoritative “Ease of Doing Business” table. Other ratings include:
- Enforcing Contracts – number 182
- Dealing with Construction Permits – number 177
- Getting Credit – number 32
- Paying Taxes – number 164
- Starting a Business – number 165.
These rankings show a marginal change, in both directions, from the previous year.
Measured against other Asian economies, in terms of ease of doing business, India again ranks poorly.
- India – number 134
- Indonesia – number 121
- China – number 79
- Japan – number 18
- Singapore – 1.
Perhaps the final word in this short article should be left to Prime Minister David Cameron who in a speech reported by the Economic Times of India said, “Today [4 February 2011] the UK still trades more with Sweden than it does with India. Is that good enough? I don’t think so. That’s why yesterday at the UK India CEO summit, I agreed a new bold target to double trade between our two countries by 2015."
Sources:
Dutta S, Mia I (editors), "The Global Information Technology Report 2009-2010" World Economic Forum, site accessed 9 February 2011
UKTI, "Sector briefing: Information & Communications Technology Opportunities in India", site accessed 11 February 2011
UKTI, "ICT Sector in India", site accessed 11 February 2011
World Bank, India: "Doing Business 2011", site accessed 11 February 2011
Economic Times, "India presents great opportunities for Britain's growth", 4 February 2011
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