1. Presentation by: VIKRAM TIWATHIA CHIEF INFORMATION OFFICER CONFEDERATION of INDIAN INDUSTRY FOSTERING INDIAN ICT TO GLOBAL REACH

2. GLOBALISATION Population Growth - 6 b to 7.5 b fuelling global demand. Economic Expansion Growth of World Trade Growth of Services Sector OECD Labour Shortages. Capital Flows Implications and Options for India Trade in Goods & in Services Capital Flows and FDI Technology.

4. Global IT & ITES Industry Global Demand (IT + ITES) 847 (2004)  1082 (2007) Source: IDC Research All figures are in billion USD Offshore-able Market 634 (2004)  836 (2007) Offshored Market 39.6 (2004)  74 (2007) IT Services pie expanding at 5-6%, BPO at 10-11% Offshoring of IT services expanding faster

5. Indian IT & ITES Industry Source:NASSCOM 14-15 60+ USD Billion CAGR 26-27% CAGR 24-25% Source: NASSCOM * Estimates for software and services only. Does not include estimates for hardware. 1.7 1.9 2.5 2.6 3.0 3.9 4.8 6.0 2.6 4.0 6.2 7.7 9.6 12.8 17.7 23.6 FY99FY00FY01FY02FY03FY04FY05FY06FY10P DOMESTIC MARKET* EXPORTS* CAGR achieved during 2000-06: 31.0% CAGR needed during 2006-10: 25.7%

6. Data Applications are Central to Connectivity & Business Models Need to combine voice and data to realize full potential of ICTs. Voice centric networks will be inadequate for mass delivery of services like education,health, entertainment, governance etc. Current internet and broadband subscriber base is largely urban and far short of policy targets. Rural coverage is minimal Low uptake of data & differentiated services Enormous global economies of scale (for example, those associated with 3G & BWA technologies) will be essential for providing affordable broadband connectivity.

8. Main Benefits that ICT can bring to India’s low income economy Source: CII Accenture Study “Making the Connection” Improved Access to Education Improved Access to Information Improved employment & business opportunities Greater accountability of govt & local bodies Improved Access to health care Improved opportunities for opportunities Improved Access to media & entertainment Improved Access to commercial products & services others

9. Sectors that would benefit most from ICT –enabled growth Telecommunication Basic farming Processed farm products Education/ training Banking & Finance Basic business process sourcing Health care Retail Vocational skilled/ semi skilled services Others - Manufacturing Media & Entertainment Other - Services Others - Agriculture

10. India’s Network Readiness Index Ranking

11. Let competitive Markets flourishLet competitive Markets flourish Bring long term clarity, coordination and transparency in policy makingBring long term clarity, coordination and transparency in policy making Reform spectrum policy to unleash the potential of wireless technologies in the creation of both connectivity and capacityReform spectrum policy to unleash the potential of wireless technologies in the creation of both connectivity and capacity Improve the enforcement of regulatory and judicial processesImprove the enforcement of regulatory and judicial processes Promote innovative business models in rural areasPromote innovative business models in rural areas Stimulate ICT demand by speeding up ICT adoption in Government procurement, taxation and services at all levels to deliver effective governanceStimulate ICT demand by speeding up ICT adoption in Government procurement, taxation and services at all levels to deliver effective governance Promote greater ICT adoption in health, education etc to enhance the value of ICT connectivity and servicesPromote greater ICT adoption in health, education etc to enhance the value of ICT connectivity and services

12. THANK YOU Vikram Tiwathia Confederation of Indian Industry vikram.tiwathia@ciionline.org