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Indian Govt. to spend INR 7K crore a year in IT augmentation

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The Indian Government is planning to spend more than INR 7000 crore every year to purchase computers and IT enabled services. The Government is planning to make it mandatory for all departments to allocate 2-3% of their total planned expenditure on IT and IT-related services.

The Department of Information Technology (DIT) has a proposed, which is approved by the Principal Secretary to the Prime Minister. The scheme will be in place for two to three years on a trial basis. DIT expects that the recommendation will not put any extra burden on the government departments and ministries. The centre is already working out on a proposal to make it mandatory for all the ministries and government departments to give preferences to the domestic manufacturers for purchase of computers and other hardware items. The steps would give a boost to the domestic hardware and software sector, which is growing at a rate of over 25% per annum.

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