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.