Harness IT for growth: Rangarajan

Our Bureau in Hyderabad

Andhra Pradesh governor and former RBI governor Dr C Rangarajan on Monday said that India must register an overall economic growth rate of 7 per cent in the next 15 years and that it was possible by harnessing information technology for the agriculture and manufacturing sectors.

Contradicting the opinion of US economists that IT growth had no significance in the economic progress of a country, he said information technology was an intermediary product to increase productivity levels.

Speaking at the inaugural function of the three-day seminar-cum-exhibition ‘GITEX Hyderabad 2002’ here on Monday, Dr Rangarajan said, “If we have to achieve 7 per cent growth rate, the savings must reach 28 per cent to supply required capital to the industry”. At present the savings rate is 22 per cent, he added.

He pointed out that IT growth in India was mostly in software and the industry had neglected the hardware side of it. “We have not developed any significant product of international standard, and it is time now to examine the scope in the segment”, Dr Rangarajan said.

Delivering the keynote address at the inaugural session Satyam Computer Chairman B Ramalinga Raju said that there was need for change in government policies with regard to institutional funding in the IT sector.

Comparing with the IT infrastructure in China, Mr Raju said that India was far behind. “Though China is not a threat to us, it is important to have industry-friendly policies in tune with China”, he pointed out.
Director General Dubai Economic Department Mohammed Ali Alabbar said the event would be conducted every year in Hyderabad and hoped that it would grow year after year.

The three-day IT event has been divided into three parts: India IT Forum, Gitex Hyderabad and IT to Citizen. About 450 delegates and 40 companies are participating in the event.

AP chief minister N Chandrababu Naidu who was instrumental in bringing GITEX to Hyderbad was barred by the election code of conduct in view of the municipal polls from participating in the event. Union minister for information technology Pramod Mahajan too did not participate in the three-day event for the same reason, officials said.

GITEX Hyderbad 2002, an event to facilitate business in the IT industry organised jointly by the Dubai World Trade Centre (DWTC) and the government of Andhra Pradesh. DWTC is a leading exhibition organiser in the Middle East for over two decades. Gitex Dubai is the flagship show of DWTC.