INDIA AND THE COMPUTER A Study of Planned Development C. R. Subramanian DELHI OXFORD UNIVERSITY PRESS BOMBAY CALCUTTA MADRAS 1992 •S <>¥-<•> Oxford University Press, Walton Street, Oxford OX2 6DP New York Toronto Delhi Bombay Calcutta Madras Karachi Petaling Jaya Singapore Hong Kong Tokyo Nairobi Dar es Salaam Melbourne Auckland and associates in Berlin Ibadan ©Oxford University Press 1992 SBN 0 19 562735 0 Printed at Rekha Printers Pvt Ltd, New Delhi 110020 and published by S. K. Mookerjee, Oxford University Press YMCA Library Building, Jai Singh Road, New Delhi 110001 To my wife Parvathi for her unfailing support University Libraries Carnegie Lleilon University Pittsburgh PA 15213-3890 ' — Contents List of Tables J* Preface X1U Acknowledgements XVI A Note on Units of Currency and Value X1X I Sclf-Reliant Development Fails (1968-78) 1 II Quest for New Policies (1978-84) 38 III The Policy of Rajiv Gandhi (1984-90) 60 IV Peripherals Pose Difficulties 83 V Mainframes - A Late Awakening 109 VI Software - Dreams of Riches 133 VII The Exit of IBM 161 VIII Indigenous Development — The ECIL Experience IX CMC Ltd. - A Qualified Success 208 X Technology and Applications Development 222 XI The Private Sector Takes the Lead 274 XII A Look to the Future 280 Appendices A. Brazil and China ^15 B. Policy Guidelines for the Import of Computers - 1975 33^ C. The Minicomputer Policy - 1978 336 D. November 1984 Policy 339 viii Contents E. Computer Imports for Software Exports 1974 Policy F. Software Export Policy - 1981 G. Software Policy - 1986 List of Abbreviations Bibliography Index of Names Subject Index List of Tables 4 1.1 Bhabha Committee Projections 1.2 Computer Applications (1968) - of. Narasimhan Tabulation 10 Electronic Markets, USA (1966 forecasts) 1.3 11..44 US Federal Funds for Research and 111111 Development (1966) 111111 1.5 R&D Expenditure in Industry 1.6 Minicomputer Panel - Estimate of 1199 requirements - (Fifth Five Year Plan) 1.7 Computers - DOE Expenditure - 333000 A Summary up to 1978 333111 1.8 Production (1976-9) 31 1.9 Computer Installations (May 1978) 32 1. 10 Distribution of ECIL Computers 32 1.11 Import of Computer Systems (1976-81) 42 2.1 Minicomputer Production (1980-2) 45 2.2 Computer Demand Profile (1982-90) 45 2.3 Estimated Demand for Peripherals 46 2.4 Seventh Plan Projection-Computer Demand 2.5 Seventh Plan Projection-Computer Demand 4477 (1985-90) List of Tables X 2.6 Seventh Plan Projection-Demand Projections for Computers 47 2.7 Import of Computers - Government Account (1980-4) 5522 2.8 Price Analysis (1983) 55 2.9 Import and Production (1980-4) 56 3.1 Production of Computers and Peripherals 75 4.1 Peripheral Manufacturing Licences 85 4.2 Peripheral Licences Granted to BEL 87 4.3 Sondhi Committee Report - List of Licences up to 1979 93 4.4 Peripheral Industry (1983) 94 4.5 Demand Projection for Computer Peripherals 97 4.6 Summary of Demand Projections - Peripherals 98 4.7 Peripherals - Licensing Recommendations - Rao Committee 9999 4.8 Peripherals - Licensed Capacity/Foreign Collaborations 101 4.9 Production of Peripherals (1985-90) 103 4. 10 Major Indian Peripheral Manufacturers (1991) 104 6. 1 Conditions for the Import of Computers for Software Export 136 6.2 Software Exports (1975-8) 139 6.3 Computer Imports for Software Exports (1981-4) 141 6.4 Software Production 142 6.5 Ten Independent US Software Companies- Sales - R&D Expenses - (1987) 152 6.6 Software Domestic and Export 153 6.7 Indian Software Industry - (1990-1) 154 7. 1 IBM 1401 Reconditioning Programme 162 List of Tables IBM - Indian Operations - Financial 7.2 116633 Summary IBM Operations - Foreign Exchange 7.3 116655 Outflow 171 IBM - Clients Served-Persons Employed 7.4 178 8.1 ECIL's Projections 180 The Proposed Range of EC1L Computers 8.2 185 ECIL Production up to 1978 8.3 193 Total ECIL Computer Sales to Private Parties 8.4 194 ECIL Computer Deliveries up to (1986-7) 8.5 196 ECIL - Invcstmcnts/Profit/Loss (1970-87) 8.6 198 System Software Developed by ECIL 8.7 204 ECIL Computer Division Performance - Sales 8.8 214 9.1 CMC Ltd. -Turnover (1989-90) 216 CMC - Value Added/Value Applied 9.2 215 9.3 CMC - Incomc/Expcnse/Profit 9.4 CMC Ltd. - Financial Position 221177 (31 March 1990) 218 9.5 Percentage Profit before Tax (1987-90) 9.6 Systems and Equipment under 221199 CMC Support (1990) 9.7 CMC Seventh Plan Targets - 221199 Revenue Projections (1989-90) 10.1 Technology Development- 222255 Completed Projects (1971-84) 10.2 Technology Development - Ongoing 222222666 Projects (1984) 222333444 10.3 NCSDCT 'Paper' Output Count 239 10.4 NIC Financial Outlays 10.5 Manpower Development- 225500 Computer Requirements (1980-5) 10.6 Computer Manpower Requirements 225511 (1985-90)