The Hindu Business Line : IT sector's contribution to employment `not so good'

WHILE the IT sector's contribution to income generation and foreign exchange is undeniable, its contribution to employment is not as good as figures suggest, according to Prof C. P. Chandrasekhar of the Centre for Economic Studies and Planning, Jawaharlal Nehru University.

Addressing a workshop on "Developmental Implications of the Diffusion of Information Technology", organised by the Media Development Foundation, The Hindu and The Economic Research Foundation, he said National Association of Software and Service Companies (Nasscom) estimates that employment rose from around 2,85,000 in 1999-2000 to just above one million in 2004-05, at a compound rate of about 28.5 per cent per annum.

However, these numbers are deceptive because of the low base from which employment in the IT sector has grown, and it constitutes only 0.21 per cent of the non-agricultural workforce in the country (NSS survey on employment and unemployment).

Mr N. Ram, Editor-in-Chief, The Hindu, said development in the IT sector has led to the rise of the `new media' and online journalism. He said as a consequence, data availability was vast. There are about 25 million Internet users in India, and while it may not be a huge number when compared to the population of the country, it still has a significant impact on media in the country.

He said the availability of various sources of information was an important development, with Web sites such as zmag.org, which contains a tremendous amount of information and critical reflection, as well as the various blogs that provide news and assessment of news.

He, however, cautioned that this continuing trend could lead to legal risks, and could also lead to plagiarism.

Mr S.S. Gill, Former Secretary, Government of India, said the information technology revolution in India has led to greater efficiency and speed in various processes in the country, and has made the administration more accountable to the people and reduced corrupt practices.

Mr Gill said several State Governments have done commendable work to implement path-breaking schemes in making life easier for the citizen and creating numerous avenues of gainful employment. He said some admirable initiatives have also been taken by voluntary agencies and the private sector, such as Amul Dairy Cooperative's "Akashganga" project, which computerised the system of milk collection and made the whole process more efficient.

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