Question : SLASH OF I.T. PRODUCTION

MINISTER OF PARLIAMENTARY AFFAIRS, INFORMATION TECHNOLOGYAND COMMUNICATIONS(SHRI PRAMOD MAHAJAN)

(a) and (b): The IT production targets and likely achievements for the year 2000-2001 are as follow:
(Rs. Crores)

Sector	Plan Target	Likely Achievement 
Hardware 82,050	34,400
Software	1,38,350	56,900 

This has been due to a domestic-centric approach of Indian manufacturing sector coupled with a protected environment, infrastructural handicaps, high cost of finance, rigid labour laws, low volumes of production, low velocity of business, high tariffs and inverted tariff structure, nonavailability ofindigenous capital goods, lack of global stardom new investments, etc.

(c): Though, there has been a decline in the rate of growth of software exports as a result of slowdown in the world economy the rate of growth of IT sector is way ahead of the rest of the Indian industry. During the first half of the current year, software exports have grown by 33% as against last year`s annual growth of 55%.