India's dream of transforming itself into an IT superpower would have been much easier, had the Indian hardware manufacturing sector been accorded the same kind of treatment doled out to the software sector.

I believe we are still not a superpower, and will never be as long as the two pans of the technology scale – software and hardware are not at par. Unlike the software industry in India, hardware firms are not getting things on a platter; there exist several challenges for hardware firms.

Today, India's IT and telecom needs are increasingly being met by imports. At a time when software services firms are facing pressure due to margins, hardware product development can be a healthy avenue for investments and entrepreneurial skills.

Yet India has failed to rise to the occasion. Lopsided policies, inverted customs duty, continuous failure to understand the needs of this industry, coupled with complications in the local indirect tax structure have hindered the growth of this industry.

The hardware sector is capital intensive and has a long gestation period. While software focuses on the overseas market for survival and success, hardware has to depend on the domestic market before it can venture into the global arena. While hundreds of investors are ready to set up software firms, only a handful of them are interested in setting up hardware firms due to the above said reasons.

Much ado has been made about the talent pool and low cost advantages of India. But these factors alone cannot be the mantra for success. It calls for certain changes in tax structures and policies. We have to shatter the perception that India does not have the skill and capability to be a hardware powerhouse. The capability to excel in this sector is being demonstrated by the manufacturing sector.

An entrepreneur, apart from setting up the company, faces the problem of getting the right kind of people and developing world-class products, which is also cost-effective. Products have to be produced in mass numbers. Then only can we change the slogan 'Go to India' instead of 'Go to China'.

The immediate need of the hour is to strengthen existing hardware clusters in Pondichery, Goa, Noida and Bangalore, reduce the excise duty on hardware products, and set up a hardware technology park. It is heartening to note that MAIT is working with the state government in this regard.
Vision is important and to achieve that the industry is working hard to swing favor and attention, from the government through rebates and concessions, to their side.

What the industry needs is a level playing field. One does not expect acres of land, but certain changes in the policy. It is time for them to take the hardware sector seriously, if they intend to make India a superpower.

The author is CMD, MRO-TEK

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