Tech companies in India have been grappling with a host of challenges, from the lack of a viable mobile platform to growing competition in the global market.
The government on Wednesday said that it would launch a pilot project to digitize all government services and will roll out the project in six months.
The pilot will help the government track how services are performing and to identify areas where improvements are needed, the finance ministry said in a statement.
The project will cover all government functions including payment processing, banking, health care, education and the National Payment Corporation of India.
The government said it will roll it out nationwide, and the pilot project will be launched with the help of private sector partners.
The launch of the pilot scheme comes amid a series of recent events that have disrupted the traditional model of outsourcing of government services, and disrupted the supply chain of many large tech firms.
The Reserve Bank of India said in August that it was cutting off loans to tech companies that had defaulted on their debt.
That prompted a flurry of calls for the government to launch a competition to decide who would supply the government services it has been struggling to procure.
Last week, the government announced that it is shutting down four of the country’s biggest online portal companies for breaching payment terms.
In August, the central bank cut off $100 billion in loans to internet giants such as Facebook, Amazon and Microsoft, as it faced a global economic slowdown.
In an interview with NDTV on Wednesday, Chief Technology Officer Rakesh Pandey said that the government was aiming to digitise the entire economy in order to get the most out of the government’s digital infrastructure and create jobs.
Pandey did not specify what the government will do to ensure that the digital infrastructure is ready for the 2020 Olympics.
“If the government has decided to do that, it is only because it has decided that it has a certain capability to digitisation of the economy and that it wants to utilise this capability.
So it is very much an option.
But it is not an automatic process,” Pandey told NDTV.