Blog

With a considerable impact on the GDP and welfare of the nation, the IT & BPM sector has emerged as one of India’s most important economic drivers. In financial year 22, the IT sector contributed 7.4% of India’s GDP, and by 2025, it is anticipated to make up 10% of India’s GDP.

Public policy is a crucial factor in the reformation of the IT sector. India’s IT industry plays an important role in shaping the global economy and driving innovation. However, it also presents unique challenges and risks that require careful consideration by policymakers.

One of the key roles of public policy is to establish and enforce regulations that promote fair competition and protect consumers. This is especially important in the IT sector, where large companies often dominate markets and have significant influence over consumer choices.

Public policies such as antitrust laws are critical for preventing monopolies and ensuring that smaller companies have a chance to compete. Another important role of public policy is to promote innovation and investment in emerging technologies. The IT industry is constantly evolving, with new technologies emerging all the time.

Public policies that encourage investment in research and development can help drive innovation forward, creating new products, services, and industries. Public policy can also play a role in addressing social issues related to technology, such as privacy concerns or cybersecurity threats. Regulations around data privacy are becoming increasingly important as more people share personal information online. Policymakers can establish standards for data collection, storage, and usage to protect individuals’ privacy rights.

Cybersecurity threats are another area where public policy plays an essential role. As more people rely on digital technology for work and daily life, cyber-attacks pose significant risks to individuals’ safety and security. Governments can establish standards for cybersecurity practices across industries or invest in research into new security measures. Public policy also has an important role to play in promoting digital inclusion or ensuring access to technology for all members of society. Access to technology is increasingly necessary for participation in modern society, from finding work opportunities online to accessing healthcare services remotely during times of crisis like pandemics or natural disasters.

In conclusion, public policy plays a critical role in shaping the IT sector’s future direction by balancing economic growth with consumer protection while promoting innovation through investment incentives while tackling social issues such as privacy concerns, cybersecurity threats, or digital inclusion. It is more essential for policymakers to work together with industry leaders and other stakeholders to develop effective policies that address the unique challenges and opportunities presented by this rapidly-evolving industry.

By,
Dr. Abhishek Pratap Singh Sachan
Economist, Strategist & Academician