Date:14/09/2008 URL: http://www.thehindu.com/2008/09/14/stories/2008091454900600.htm

Tamil Nadu

‘Phenomenal IT growth will create imbalances’

Special Correspondent

CHENNAI: The divide created by the growth of the information technology industry can be seen from a simple fact: the total projected revenue of the IT sector in 2025 will be around (or even greater than) the current total earning of India’s population below the poverty line.

While analysts say the IT sector will touch total revenues of $120 billion by 2025, India has more than 280 million people living below the poverty line of $1.25 a day.

At a panel session at Connect 2008, P.R. Ramasubrahmaneya Rajha, chairman and managing director, Madras Cements, said that taking the IT sector’s phenomenal growth to rural India would create imbalances.

Rural India would have trouble adjusting itself to the differences in pay and lifestyle. Along with government initiatives, sufficient physical and social infrastructure should be built to avoid problems later on, he said.

Ashok Vardhan Shetty, Principle Secretary, Rural Development, said Tamil Nadu had done well in developing infrastructure. There were also plans to take the benefits of IT to improve the quality of life.

The physical infrastructure would be built by setting up libraries and sports centres in every village. But the private sector should also take the initiative without waiting for the government to implement its programme, he said.

IT Secretary C. Chandramouli said the ‘e’ in e-governance reflected the government’s role as enabler. Information technology was a useful tool, but good governance was the government’s prerogative. He said Tamil Nadu had performed exceptionally well in implementing e-governance and IT technology for rural development, but it had been largely piecemeal until now. He also defended the free colour television scheme.