Lok Sabha Question No. 1047 (UNSTARRED), answered on 2016-03-02
Subject: Investment in IT Sector
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: PONGULETI SRINIVASA REDDY

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DEPARTMENT OF ELECTRONICS & INFORMATION TECHNOLOGY)

## LOK SABHA UNSTARRED QUESTION NO.  1047

TO BE ANSWERED ON: 02.03.2016

## INVESTMENT IN IT SECTOR

## 1047.    SHRI PONGULETI SRINIVASA REDDY:

Will the Minister of Communications & Information Technology be pleased to state: -

- (a) whether the Government is aware that investment in latest technologies by Indian IT companies will improve efficiency;
- (b) if  so,  whether  penetration  of  digital  technology  and  upgradation  of  employees'  skills will also lead to mass retrenchment and if so, the details thereof and the steps taken by the Government in this regard;
- (c) the  measures  taken  by  Government  to  strengthen  the  new  start-up  by  using  digital technology;
- (d) whether  the  gap  between  the  demand  for  skilled  workforce  and  its  availability  is widening; and
- (e) if so, the steps taken by the Government to bridge this gap?

## ANSWER

## MINISTER FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

(a):  Yes, Sir.

(b):  No,  Sir.  According  to  data  published  by  National  Association  of  Software  and  Services Companies  (NASSCOM),  the  Indian  Information  Technology  &  Information  Technology Enabled  Services  (IT-ITES)  industry  continues  to  be  a  net  hirer  of  personnel,  currently employing  about  3.7  million  personnel  and  has  provided  direct  employment  to  1.1  million persons in the last 5 years.

(c):  According to Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, the 'Startup Action Plan' released on 16.1.2016, includes inter-alia rolling out of Mobile App and Online Portal for registration of and compliances by Startups.

(d) and (e): As per National Skill Development Council (NSDC) Report on Human Resources and Skill Requirements in the IT and ITES Sector, out of the available talent pool of engineering and MCA graduates, about 25% are employable in the sector. Further, new or complex service offering  require  skill-based  training.  According  to  NASSCOM,  Design  Engineering,  Cyber Security,  Analytics  and  Big  Data,  Technology  enabled  Healthcare,  Mobile  Platforms,  Cloud

Computing, Internet of Things (IOT), Digital Marketing etc. are some of the new technologies that are driving workforce skills.

Some  of  the  Schemes/Projects  of  Department  of  Electronics  and  Information  Technology (DeitY),  Ministry  of  Communications  and  Information  Technology,  Government  of  India,  to ensure availability of trained human resources for the IT industry are as under:

- (i) Post Graduate and Doctorate level : Visvesvaraya PhD Scheme for Electronics and IT
- (ii) Graduate  level :  Scheme  of  financial  assistance  for  Setting  up  Electronics  and  ICT Academies in IITs, NITs, IIITs etc.
- (iii) Vocational, Skill development level :
- (a) Skill Development in Electronic System Design & Manufacturing (ESDM) sector
- (b) Efforts to generate greater participation of Industry through Sector Skill Councils  Electronics, IT/ITES, Telecom, Medical Electronics etc.
- (c) Skill development training to enhance employability
- (iv) Niche Areas:
- (a) Information Security education and awareness (ISEA)
- (b) Electronic Product Design and production Technology
- (c)  Special Manpower Development program for Chips to Systems
- (v) Grass root level: for spreading Digital literacy to the masses in the country (a) IT Mass Literacy (National Digital Literacy Mission)
- (b) Digital Saksharta Abhiyan (DISHA)
- (vi) Skill development facilities in deprived areas through National Institute of Electronics and Information Technology (NIELIT), an autonomous society of DeitY.

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