News: ‘Spread of ICT a must for India’s growth’

(DNA 28/11/2006) New Delhi - Expansion of information and communication technology (ICT) in low-income markets is expected to increase the proportion of businesses operating in these markets by about 20% across industries in the next five years, according to a study conducted by consulting firm Accenture in collaboration with the Confederation of Indian Industry.

According to the study, based on a survey of more than 200 business executives in India across major industries, 94% of the respondents believe the usage of ICT has been a major reason for India’s recent economic growth, and 88% see ICT as a major driver of current and future development.

“Increasing ICT penetration is imperative to India’s economic growth,” said Sadeesh Raghavan, managing director, domestic businesses for Accenture, India.

A vast majority (87%) of the respondents believe that socio-economic disparities between rich and poor communities pose a significant obstacle to the sustainable growth of the Indian economy, and a similar number (88%) feel the increased usage of ICT will be a major determinant in overcoming these disparities. The findings suggest the next phase of ICT-led growth will come from three main sources — supply-side opportunities, catalytic impact of ICT and better access to education.

As access to ICT in low-income markets improves, the focus is likely to expand from well-known demand-side benefits to include supply-side benefits such as more efficient supply chains, better communication, improved productivity and lower input costs. Also, ICT will deliver spill-over and multiplier effects, which will bring new growth opportunities across all industries.

The study concludes with four imperatives for the Indian economy to capitalise on ICT-enabled growth, including investment in human capital by improving education, development of a coherent infrastructure, building partnerships between the ICT industry and government, and ensuring affordability and relevance of content that is delivered appropriately.