A new deal for IT

Now that the AIADMK leader J

Jayalalitha is firmly in the saddle as the new Chief Minister of Tamil Nadu, the

IT industry is looking ahead to a busy season, for the party has promised a host

of initiatives to consolidate the state's strong position in this promising

industry sector.

The state's economy definitely

needs this push from the government. Nationwide, the economic downturn, partly

caused by the slowdown in the US economy and loss of business confidence within

the country, PC sales are down. The situation is no different in Tamil Nadu.

AIADMK's election manifesto has promised to launch a number of schemes, which

are bound to perk up the market place.

One of the key initiatives

promised by the new ruling party is the e-enabling of the vast network of

cooperative banks and cooperative societies. If this project takes off, the

demand for IT products and services should be substantial. Similarly, the

Jayalalitha government has stated the intention to e-enable the extensive public

distribution system, catering to millions of people. The proposal involves

extensive use of IT technologies in streamlining the procurement process,

finance management, marketing and human resource functions. Providing touch

screen kiosks in all parts of the State to take the benefits of Internet based

technologies such as email to all citizens is likely to be another key

IT-intensive initiatives.

There are several other

important programs outlined in the manifesto. This includes, use of broadband

technologies, use of mobile live communications to beef up the connectivity in

remote villages, investments in further strengthening the IT education system.

AIADMK government has also proposed to help the software industry widen its base

by providing key infrastructure facilities in more small and big towns. The

emphasis will be on installing satellite earth stations.

The emerging area of biotech and

bioinformatics too will get good attention. The ruling party has promised to

network all the agricultural universities and research institution and use

Internet technologies to benefit farmers in a big way. These are all good

intentions. Now we have to await the action plan from the government once it

settles down.

In her previous stint at CM

between 1991 and 1996, Jayalalitha had taken many commendable steps to attract

big industrial units such as Ford and Hyundai to the state. Tamil Nadu is

already a top destination for foreign direct investments in IT and other leading

industry sectors. The new CM has already indicated her resolve, in public

statements, to make TN the No: 1 State in the country in social and economic

areas. So one can look forward to a pro-active approach in attracting more

industrial investments which should benefit the IT sector too. 

The new government has started

well. The flurry of bureaucratic changes that follows the change of government

guard has not happened so far. We will know in the next few weeks the IT agenda

that will be articulated by the Jayalalitha government. We eagerly look forward

to it.