(a) Examine how information and communication technology has boosted the development of certain regions of India. 20 (b) Discuss…

(a) How ICT has boosted the development of certain regions of India

Information and communication technology (ICT) has been the growth engine of a few regions, because it needs skills, connectivity and institutions rather than raw materials.

Regions: Bengaluru in Karnataka became the leading IT city; Hyderabad (HITEC City), Chennai, Pune and the Delhi region (Gurugram, Noida) followed. Smaller centres such as Thiruvananthapuram (Technopark), Kochi, Coimbatore, Bhubaneswar, Indore, Jaipur and Visakhapatnam are growing as second-tier hubs.

Factors: STPI parks (1991), SEZs, supportive State policy, skilled graduates, English language skills, climate and infrastructure.

Impact: IT-BPM revenue now exceeds US$250 billion a year, with exports the largest part, and employs several million people. It brought high incomes, urbanisation, real estate and construction, and support services such as transport, food and retail. It raised per-capita income in the host States. Local multipliers drew migrants and ancillary firms, and e-governance improved services in States such as Andhra Pradesh and Karnataka. In rural areas, common service centres, e-Choupal and telemedicine, and BharatNet connectivity are widening access.

Limits: growth is concentrated in the south and west and a few metros, so ICT has widened regional gaps; the digital divide and shortage of skills hold back eastern and central States; and cities face congestion and water stress. Remote work and Digital India can spread benefits if broadband and skills reach lagging regions.

(b) Command Area Development Programme and regional inequality

The Command Area Development Programme (CADP) was begun in 1974–75 as a centrally sponsored scheme to bridge the gap between irrigation potential created and actually used in major and medium projects. It later became the Command Area Development and Water Management (CADWM) programme, and since 2015–16 forms part of the Pradhan Mantri Krishi Sinchayee Yojana (Har Khet Ko Pani).

Components: on-farm development such as field channels and land levelling; warabandi (rotational water distribution) and measurement of water; drainage; farmers' water user associations for participatory management; and extension and training.

Impact: higher irrigated area and yields, more cropping intensity, and reduced waste, as in the commands in Punjab, Haryana, Andhra Pradesh, Maharashtra and Karnataka. It helped tail-end farmers and dry areas get water, and so reduced gaps within commands.

Critical view: it covers only irrigated commands, so already better-off regions gained most, and the poorest rainfed areas (Bundelkhand, Marathwada) gained little; head-end farmers still take more water than tail-end; waterlogging and salinity appear without drainage; and farmer participation and funding have been weak. Its role in reducing regional inequality is therefore partial.

(c) Balance of trade of India and measures

India has a persistent merchandise trade deficit, because imports exceed exports. In 2021–22 exports were about US$420 billion and imports about US$610 billion, a deficit of nearly US$190 billion. A surplus in services (IT, business services) and remittances offsets part of it, so the current account deficit is smaller.

Causes: heavy imports of crude oil and gas, gold, electronics, coal and fertilisers; heavy dependence on imports from China; limited manufacturing competitiveness and low share in global value chains; and a strong dollar or high commodity prices.

Measures:

• Reduce energy imports through renewables, ethanol blending, electric vehicles and domestic output.
• Raise manufacturing exports through the production-linked incentive schemes, Make in India, export credit, tax refund schemes (RoDTEP), logistics reform and special economic zones.
• Conclude trade agreements, such as with the UAE and Australia.
• Reduce import dependence in electronics and defence through local manufacturing.
• Curb gold imports through gold monetisation and gold bonds.
• Promote trade settlement in rupees and diversify export markets.