From wealth creation to improving the quality of life for all sections of the society, IT has been recognized as a key-leveraging factor in National Development I.T and Electronics accounts for about 4% of the global GDP. IT/ Electronics is not only the fastest growing industry worldwide but also has a profound effect on other industries in increasing productivity, changing cost structure and even the way we live and work.

India embarked on a comprehensive economic reforms program in 1991. This aimed at rapid and substantial economic growth preparing India for integration with the global economy. The process of further liberalization of industrial approval, foreign investment, EXIM and fiscal policies, economic reforms and simplification of policy, procedures and efforts towards making them responsive to the needs of industry continued during the Ninth Five Year Plan. In the fast paced technology sector such as Electronics and Information Technology, the characteristics which underpin the industry and services are fast technological developments, reducing business cycle times, just-in-time and time to market.

Indian Electronics/IT hardware sector has grown at a CAGR of 11.6% during 1991-2002 reaching a production of Rs. 37,000 crores during the year 2002-03. Growth in production during the VIII Plan (1992-97) and IX Plan (1997-2002) was15`% and 10.3% respectively. India presently accounts for about 0.6% of the global Electronics/IT hardware production of US $ 1200 billion (2001). As per the Tenth Plan projection (realistic scenario), Electronics/IT hardware production in terminal year (2006-07) is targeted at Rs. 69,000 crores (CAGR 15%).