Reforms in Stages Pre-Reform Post-Reform

Stage-1: 1980-1990 No appropriate Allowed import of

Govt. Decision to Liberalize IT infrastructural facilities Hardware and export of
Sector and De-licensed the for software software through New
imports of hardware and development. Licensing Schemes formulated in
software for exporters. and High-Tariffs. 1972.
Stage-2:1990-2000 Observed intensified A flow of Foreign
1) Liberalization competition. Investments came in
2) Offshore Model Substantial changes in India.
3) Onsite Model Indian economy. MNCs in India were
4) Global Delivery Model Relaxation in Entry introduced.
Barriers, opening up of
Indian economy for
Foreign Investments.
Stage-3:2000-2010 Software service Importing Duty free
Special Economic Zones(SEZ) companies were earning hardware.
Act good amount of Foreign Income Tax exemption
Information Technology Act Exchange, resulting on Exports for 10 years,
2000 cheaper hardware, Faster results in Increase in
National Broadband Policy communication and number of software
2004 Setting up of Technology companies.
Parks. IT Act gave a boost to E-
commerce.
Broadband to 20M
Indians by 2010.
Stage-4:Post 2010 Country become world’s Cloud Services revenue
Online Retailing largest sourcing is expected to reach US$
Cloud Computing destination for IT. 1.23B in 2016.
E-Commerce Growth rate of 12-14% in Increase in Online
2016-17. Shopping.
Internet user base is 3rd
Largest in world.

What reforms could be done?

Latest technologies in IT Industry are :

 Artificial Intelligence
 Cloud Computing
 Research & Development

Need reforms for faster execution of these technologies.

 US

Federal Information Technology Acquisition Reform Act

The Federal Information Technology Acquisition Reform Act made changes to the ways the U.S. federal
government buys and manages computer technology.

- To develop a stream line plan for its acquisitions.

- Bill would increase the power of CIO’s who is responsible for the success and failure of all IT
projects in that Agency
- To make use of private sector best practices.
- Intended to reduce IT procurement related waste

Pre-Reforml: US spends over $80 Billion a year on IT and Products and services. Almost half goes to
maintaining old and out-of-date systems.

Cybersecurity Information Sharing Act (CISA) - Its objective is to improve cybersecurity in the United
States through enhanced sharing of information about cybersecurity threats, and for other purposes.
Cybersecurity Enhancement Act of 2014: It was signed into law December 18, 2014. It provides an
ongoing, voluntary public-private partnership to improve cybersecurity and strengthen cybersecurity
research and development.
Federal Exchange Data Breach Notification Act of 2015: This bill requires a health insurance exchange
to notify each individual whose personal information is known to have been acquired or accessed as a
result of a breach of security of any system maintained by the exchange as soon as possible but not later
than 60 days after discovery of the breach.
National Cybersecurity Protection Advancement Act of 2015: This law amends the Homeland Security
Act of 2002 to allow the Department of Homeland Security's (DHS's) national cyber security and
communications integration center (NCCIC) to include tribal governments, information sharing, and
analysis centers, and private entities among its non-federal representative

Post-Reform Impact:

 Increase in Economic Growth and Job Gains

 Value-added produced by software industry from 1997-2012 is from $149,404 to $425,413
Million dollars.
 Value- Added produced by Software industry as a share of GDP in 2012 is 2.6%.
 Employment generation 2014 – 2,503 thousands.
 Industry exports rose to $60 Billion in 2012.
 Australia

Disruptive Australian Technologies:

Key takeaways: Between 2014 – 2020, the contribution of digital technologies to Australia’s economy is
forecast to grow 75 % to A$139 Billion.

With a track record of excellence in complex problem solving and a natural advantage in globally
significant industries, Australia offers compelling opportunities in disruptive technologies for buyers,
investors and collaborators.
Important Technologies:
 ADDITIVE MANUFACTURING - 3D model data - Streamlining supply chains, reducing inventory
requirements, lowering production costs, and driving new intelligent lightweight designs.
 ARTIFICIAL INTELLIGENCE - Australia’s innovation and startup hubs, accelarators and venture
capital communities are actively promoting and building capability in AI. (CAI) Centre for
Artificial Intelligence is a world-leading research centre in AI. Its vision is to develop theoretical
foundations and advanced algorithms for AI and to drive progress in related areas such as
Computational Intelligence, BI, Data science, Machine Learning.
AI and Robotic automation is perhaps the biggest economic opportunity that Asutralia has over
the next 30 years. It is by far the largest source of productivity growth and could potentially add
up to $2.2 Trillion in value to the Australian economy by 2030.
 AUTOMATION
Australian industry ws an early adopter of automation – the use of machines and technology to
make processes run on their own without input from an operator.
 BIG DATA
The department of the Prime Ministe and Cainet has also established the DATA INTEGRATION
PARTNERSHIP FOR AUSTRALIA(DIPA), demonstrating austalia’s commitment to a data-led
economy and data-driven organizations.
 BLOCKCHAIN
Investment by the Australian Government through Data61 to research this undeniably globally
transformative technology puts Australia on the leading edge of the nations looking to educate
the population on the applications and opportunities presented by the blockchain technology.

 CLOUD

Australia’s cloud computing competitive advantage stems from its geographic isolation,
availability of low-carbon energy sources for data centres, low sovereign risk profile and a
regulatory environment with robust privacy laws. SAAS, IAAS, PAAS are the three primary types
of cloud services.

GLOBAL FIRMS INVESTING IN AUSTRALIA

 Getting global investments from US, Amazon Web Services, IBM, Microsoft and Oracle.
 Financial service firms such as Chi-X and Bloomberg has investments in Sydney.
  CYBER SECURITY
With robust legislation, advanced law enforcement capability, rigorous policy development and
strong technical defences, Asuralia is an ideal environment for advanced research in cyber
security.

CSIRO’s Data 61: Australia’s largest data innovation, developmed the seL4 Kernel, which provides the
strongest operating system security available in the world. The Defence Science and Technology Group
has developed award winning approaches for the trustworthy use of commercial hardware. Data61 and
DST are partenering to bring together these developments and provide feasible rustworthy software
and hardware solutions with broad applicability.

Statistics: 1) Gowth of the Australian cyber security industry from A$ 2 BN to A$ 6 BN. Has the potential
to almost triple in size by 2026.

2) US$3.52 Billion value of Australian systems integration market.

GVA of the IT, software and computer services sub-sector

GVA(£bn)
2010 2011 2012 2013 2014 2015 5 Year
Growth
IT, 25.4 27.9 28.9 30.6 33.1 34.7 38.8%
Software
and
Computer
services
% if UK 1.8% 1.9% 1.9% 2.0% 2.0% 2.1%
total
UK Total 1,414.6 1,452.1 1,495.6 1,624.3 1,661.1 17.4%

Existing regulatory arrangements for the digital sector are largely driven by the European
Commission’s Digital Single Market (DSM) Strategy,17 published in May 2015. This outlined 16
initiatives to update the Single Market for the digital age, promote digital trade and encourage
the growth of the digital economy. These consist of a mix of regulatory and non-regulatory
measures, covering digital, broadcasting and telecoms. The DSM includes initiatives on:
 free flow of data;
 cyber security;
 e-Privacy;
 setting ICT standards; and
 intellectual property.

Data Protection

From 25 May 2018, the EU General Data Protection Regulation (GDPR) will replace the 1995
Data Protection Directive as the EU standard on general data processing. The UK Government has
introduced a new Data Protection Bill to repeal and replace the Data Protection Act 1998 with a new law
that provides a comprehensive and modern framework for data protection in the UK.

 Stronger sanctions for malpractice and set new standards for protecting general data.
 Give people more control over use of their personal data, and providing new rights to move or
delete personal data.

Network and Information Security (NIS) Directive

Comes into effect in May 2018,

  Aim to make the online environment more trustworthy and hence to support the smooth
functioning of the EU DSM.
 Aims to improve cyber security capabilities in Member State.

Wider technical standards and regulations

European Standardisation Regulation – 2012/1025 – describes how the EU works with

standardization and a legal hierarchy of standards and how they relate to each other.

Existing frameworks for how trade is facilitated between countries in this sector

World Trade Organisation (WTO) – Sets rules for trade such as General Agreement on Tariffs and
Trade(GATT), The General Agreement on Trade in Services (GATS) and the Agreement on Trade Related
Aspects of Intellectual Property Rights (TRIPS) agreements.

Growing the AI & Data-Driven Economy

 AI Cloud add £232bn to the UK economy by 2030.

 UK is already a world leader in AI.
 Investing £162m in innovation for low-carbon industry, and also developing a new strategy for
the bio-economy.

Key policies include:

 Raising total R&D investment to 2.4 per cent of GDP by 2027.

 Increasing the rate of R&D tax credit to 12 per cent.
 Investing £725m in new Industrial Strategy Challenge Fund programmes to capture the value of
innovation.

 53% of the pubic is happt with the changes technology is creating.
 65% if business leaders said their business has been fundamentally changed by technology.
 69% said the same about their sector,
 63% said their organization is undergoing digital transformation,.

Business Leaders about technology I their organization has already implemented, the top three
answers were:
 60% Cloud
 53% Data Analytics
 31% IoT
When asked about the technology they plan to implement in future, the top three answers were:
 32% AI
 29% Robotic Process Automation (RPA)
 Wearables
 CHINA
The three most important government agencies in china with respect to ICT policy are the
 National Development and Reform Commission (NDRC)
Takes charge of plans and public investment.
 The Ministry of Industry and Information Technology (MIIT)
Is responsible for the policy and operational action in the ICT industry.
 The Ministry of Science and Technology (MOST).
Supports R&D

Above all three, there is a newly appointed Central Cyber security and Inforamatiztion Leading
Group, head by President Xi and composed of 21 ministers from related ministries and
commissions.

The most important law may be the Telecommunication Regulation passed in 2000, which
affected the telecom market of China for more than 10 years.
 In 2004, Electronic Signature Law was passed to provide the legal status to electronic signatures
in E-commerce.
 Radio Regulations, enforced in 1993, has been renewed in 2014 to provide radio spectrum for
mobile broadband.

A core component of China’s ICT strategy has been the development of indigenous ICT technologies
and industries so that China is not dependent on trade in these technologies.
CLOUD COMPUTING
 Government views cloud computing as an important wave of ICT development that China my be
able to use to gain a significant competitive advantage. This is why the initial introduction of
cloud computing in to China was quickly followed by a tide of Internet data centre(IDC)
construction. Nevertheless, the growth potential of China’s cloud computing market is
significant. This is why Alibaba, Baidu, Tencent, and other domestic companies began to deploy
cloud computing services several years ago, and many solution or software companies also
embraced cloud solutions. Because of this, international cloud leaders are also focusing on the
Chinese cloud market.
 INTERNET OF THINGS
The peak of inflated expectations for the Internet of Things in China began in 2009. But the
widespread adoption of IOT applications did not appear until after that year, and China realized that it
might take dozens of years to see the full benefits from the Internet of Things.

There are many categories in IOT, such as intelligent household appliances, smart power grids,
health applications, intelligent buildings, and smart transportation. China has focused on a number of
different IOT applications.
Every year, 250 petabytes of new data is put into storage in China, equivalent to 40 percent of
Japanese levels and 6 percent of North American levels.

DATA INNOVATION
“BIG DATA” and data innovation more broadly have gained considerable attention in China,
with many conferences held and industry association efforts made in the last three years.
Estimated that China’s total amount of data storage in 2012 is 364 Exabytes.

Alibaba can predict consumer price inflation (CPI) according to the transaction data on its platform, and
it can provide small loans to users according to their credit record. Alibaba even collects data through
the provision of subsidies for its users to encourage usage.
The Industrial and Commercial Bank of China, the largest bank in the world, has 4,500 terabytes of data
which it uses to provide custom service and risk management.

THE NEW ROUND OF REFORM AND INNOVATION POLICY IN ICT

In November 2013, China held an important conference, the Third Plenary Session of the 18 CPC Central
Committee, which kicked off the new round for economic and social reform.

 Many actions have been taken corresponding to the new-round’s reform decision in the ICT
field. Virtual Network Operators(VNO) are now required and allowed to rent telecom network
facilities from the incumbents in order to provide their own service.
 The government also established the Shanghai Free Trade Zone and adopted the new special
administrative measure (negative ist) on foreign investment access to China.
 This means that foreign investment is allowed to run any business in the one as long as it is not
on the negative list.

CONCLUSION
Reforms should focus on results, and the recent reform efforts in China are a refletion of this view.
China has a long way to go before its ICT market is fully open to foreign investment and providing
equal treatment to foreign and domestic providers. Chinese govt. appears to be giving the lion’s
share of policy focus to Chinese ICT industry development.