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Infrastructure Management: Charting a new roadmap for CIOs! A CIO Special

 
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Home > 50 Years of IT > Perspective

On The Evolution of Manufacturing in India
Hemant Sonawala, chairman, Hinditron
Saturday, December 30, 2006

In the post independence era, India was geared towards a program of self-reliance and internalization of production. The 50 years of the Indian Computing Industry, from 1956 to 2006, has seen a mixed bag of experience. Before 1956, we had a few computer installations, mainly through second generation products, primarily catering to data processing applications.

In the earlier periods, the industry witnessed the most stringent measures from the government in regulating, manufacturing and technology transfers. No significant R&D activities were supported by the Government, though state run and private sector laboratories and defence establishments with limited funds could deliver limited successes.

The mid-'60s and '70s were monopolized by few MNCs. The industry witnessed restrictions through licenses, high import duties, software export obligations, etc. Trade treaties between countries also influenced the import of Hardware from Russia and the UK.

Hemant Sonawala, chairman, Hinditron

In the 1970s, efforts were made to encourage indigenous manufacturing of hardware. But the result was a poor market with low supply and highly priced products. In the late '70s, restrictive industrial policy curbed access to technology, slowed market penetration and virtually eliminated overseas competition.

In mid-1980's, India's development strategy was characterized by import substitution policies aimed at nurturing the domestic industry. With the Government's emphasis on self-reliance and internalization of production, and due to the vision of some of the industry technocrats and scientists, the role of the Indian IT manufacturer was conceived.

With these objectives, the Indian academia and entrepreneurs started their evolution. Initially, restricted imports of current technology products were permitted and minicomputers and some current state-of-the art products were made available. Simultaneously, Indian entrepreneurs along with education, scientific and engineering research entities, started working to catch up and create a local industry, to be competitive and cost- effective embracing wide range of applications.

Though there were constraints initially, the industry made consistent efforts in the areas of R&D, design, development, manufacturing, fabrication of products and solutions with co-operation among the players as well as research institutions.

Today, the industry has succeeded to produce cost effective, current technology products and put up state-of-the-art manufacturing facilities, R&D to have globally competetive products. The industry has made enviable strides to catch up with the latest hardware and solution technology.

Today, the IT industry is producing cost effective, current technology products, and has put up state-of-the-art manufacturing facilities for products which are globally competitive

The IT industry's achievements during the last five decades are:

  • R&D

  • Import substitution / indigenization

  • Cost reduction

  • Accreditation of international quality and procedural standards

  • Effective global player serving domestic and global markets

  • Creating employment for a wide spectrum of multi-disciplinary talents

The impact is overwhelming and in all segments of economy, the industry has now become a globally compatible player with many, including global players participating in this endeavor to continue to catch up with the current and on-going changes in technology.

The industry continues to work toward its mission-"Together we can and we will, make tools available to create better life through technology".

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