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.

For giving a boost to the Electronics and Information Technology Industry in U.P., a number of policy measures were taken during the year 1999. An I.T and Electronics Policy 1999 was approved by the Cabinet and declared. The Policy aimed at taking U.P. to the thresholds of a new Knowledge economy and providing impetus to the domestic industry.

Uttar Pradesh has managed to keep up with the National growth rate with a growth rate of about 25% (export turnover of approximately Rs. 2000 crores during 2001-02 and around Rs. 2500 crores during 2002-03). The growth of I.T export has mainly been due to rise in exports from the software export houses.

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䀠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%).

Broadly the definition of I.T. will be as per the Government of India guidelines. The definition shall include computers, stand alone Central Processing Units(CPUs), parts captively consumed in the factory of the manufacture of computers, cellular handsets and software also. This may be suitably altered to suit the needs of the State from time to time by a high level Authorised Committee constituted under this policy.

Growth of Software, Hardware and services industry in the state has not been consistent with the potential. The objectives of the Policy in supporting/encouraging IT industry/ manufacturing would thus be as follows:

• Bringing IT to masses

• Accelerate the use of information technology in schools, colleges and educational institutions

• Spurring the Domestic demand for software, hardware and services

• Making Software, Electronics/IT Hardware and ITS/ITES Sectors globally competitive and thereby increasing export earnings

• Facilitating the industry for addressing global markets

• Facilitate formation of value additions for growth of the industry

• Help businesses realise full potential in creating wealth.

The strategy is to achieve economic growth through development of nationally and globally competitive industry by facilitation and providing confidence, dedication, purpose and a fertile ground in which investments would flourish.