Indian GIS Market: On an Upswing

Indian GIS market will grow much faster than any other market in world! The die is cast!!

Indian GIS market is witnessing a major transformation**. Central Government (Federal Government) has spent several hundred crore Indian rupees (Several 100 million $s) under APRDP-R and National Land Records Modernization Programme (NLRMP) and planning to spend much more in future. Sample this - Rs 473 cores was allocation in NLRMP last year – that mean almost 100 million USD at the start of the projects!!!

“NLRMP has been approved by the Cabinet in its meeting held on 21.8.2008. The budget provision for the Scheme during the current year (2008-09) is Rs.473.00 crore. Accordingly, it is proposed to implement the NLRMP across the country and to make it fully operational over the next five to eight year period”

If we put together all the budgeted numbers that are planned for GIS related expenditure by Indian government, it will be a substantial percentage of the “total world GIS market size” estimated by Daratech report!! Actually, Daratech report of past years has given a complete slip to the Indian market (and none of the Indian companies figure in the list of Daratech)!!! All that should change for good now!!! And BTW, in addition to the government planning, some serious money in being spent in private sector as well!!!

Today’s TOI Business page has interesting news – “Finmin set to web-monitor infra projects – GIS Mapping will enable Officials Identify Causes of Delay, Deadline Miss”.

http://timesofindia.indiatimes.com/India-Business/Finmin-to-web-monitor-infra-projects/articleshow/4655913.cms . This GIS based process is $800K project. And you will hear many more in coming days.

For last few days, I started doing some research to re-assess and re-evaluate the Indian market. It will take me few more weeks to put together a market size evaluation and document the new dynamics in market (yes, its changing fast). Those of you who are interesting may send a request for the copy of report to me.

But there are several big question: Where is all the money going? Are these big budget projects getting successfully implemented? Are companies making money on these projects? Are Indian companies/government seeking out expertise from countries like Canada and USA to learn from the experience and mistakes committed by the countries who have invested heavily on GIS based systems?

Is Indian GIS market mature? More on this in future but I am keen to share an Incident that is almost 10 years old! There was a tender by Municipal Corporation of an IT savvy Indian state for a GIS project. Who’s who of Indian GIS industry participated in the pre-bid meeting. At least 30 executives of top companies converged in the city. Several thousand $ must have been spent by companies on preparation for the bid! Finally the project was awarded for USD200, yes there is no K in that – Rs 10,000 only!!! And all big companies lost out. Chairman of that company is a good friend and his logic was very interesting – he said my objective was to beat you(RMSI), Infotech & Rolta and I have done it!!! Cheers.

How different is situation now? Let’s discuss in coming days!!!

Manoj Misra

PS: ** I am fascinated by the word “Transformation”! My favorite questions, when I used to interview staff for technical positions used to be – what’s the difference between “Projection” and “Transformation”!!! The big question about Indian market is – is this “Projection” of market or true “Transformation”?