September 3, 2020
Local capabilities in Innovation, Research & Development, and Advanced Manufacturing are to be elevated to global standards.
Focus areas include upskilling, technological transfer, benchmarking of policies, and increased capital infusion.
The Policy introduces a proposed investment target of US$ 68 bn and an annual industrial growth rate of 10% for the State.
Promoting economic growth in Tier-II and III cities, labour reforms and investments for the creation of tech parks are on the anvil.
The Information Technology (IT) Policy 2020- 2025, formulated for the state of Karnataka, has been recently unveiled. This particular policy is guided by a vision to transform the State into an ecosystem of sustainable growth and to simultaneously elevate to the global platform, local capabilities in the context of Innovation, Research & Development, and Advanced Manufacturing. With the view to impact allied sectors including MSMEs, startups and Fintech, the provisions of the policy will provide impetus to improve industry infrastructure, promote upskilling and technological transfer, facilitate the benchmarking of policies & processes and increase capital infusion.
Strategic partnerships to enhance the quality of local R&D capabilities, promotion of economic growth in Tier-II and III cities, labour reforms and the eliciting of quality investments for the creation of factories and state-of-the-art industrial parks are among the strategies on the anvil. The state of Karnataka can expect to become a global powerhouse with a proposed investment target of US$ 68 bn and an annual industrial growth rate of 10%. The policy is also expected to provide both direct and indirect employment to more than 20 lakh individuals, while significantly increasing the quantum of merchandise exports in the five years to come.
The Indian Fintech and Information Technology ecosystems are ones with potential for exponential growth. Earlier this year, the National Association of Software and Services Companies (NASSCOM) cautiously projected a sectoral growth rate of 7.7% with an export value of US$ 191 bn in the fiscal year 2020. The proliferation of Special Economic Zones (SEZs), availability of quality talent and the rise of Tier-II and Tier-II cities as hubs of IT activity supplemented by the Digital India initiative make India an attractive destination for global investment. The Fintech sector on the other hand, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), is projected to grow to US$ 13 bn in 2020 with the software market accounting for US$ 2.4 bn. Experts attest to the scope of improving capabilities in cybersecurity and communication in digital payments, the integration of emerging technologies like AI and Analytics into the system, API integrations and cashless transactions. With radical and future-forward policies, the Indian IT/ITeS and allied sectors can expect significant growth in the days to come.