There are a number of other positive developments taking place in India.
Increased Capital Availability: A combination of venture capital and private equity funds are making available money for Indian entrepreneurs to grow. Over the past few months, most US-based venture capital funds have visited India and some have already started making investments. The private equity funds are also flush with cash for Indian opportunities. What is now needed is the vision on the part of Indian companies to think big and expand. There has also been a sharp increase in the foreign direct investment into India. Companies like Intel, Cisco and Microsoft have all announced billion-dollar investments into India addressing both their development needs and the domestic market.
Growth beyond Metros: The growth in India this time around is not limited to just the major cities. Second- and third-tier cities and towns are also seeing rising incomes and increasing opportunities.
Bharat Beckons: Rural India (labeled as Bharat by some to distinguish it from urban India) is also being noticed. A good monsoon has helped. The government has also announced various schemes for rural India. All of this is making more money available in the hands of people. Indian companies facing some saturation in urban areas are now expanding into rural India.
Services Boom Continues: Outsourcing to India now runs deep and wide. Thomas Friedmans book The World is Flat showcased Indias strengths in a world where technology is breaking down barriers. India has strengthened its position as the premier destination for outsourced services. It started with price arbitrage but now companies have also started migrating higher-end work to India. A cover story on the future of outsourcing in the latest issue of Business Week highlights this trend: Have a cool new telecom or medical device but lack market researchers? For about $5,000, analytics outfits such as New Delhi-based Evalueserve Inc. will, within a day, assemble a team of Indian patent attorneys, engineers, and business analysts, start mining global databases, and call dozens of U.S. experts and wholesalers to provide an independent appraisalWant to market quickly a new mutual fund or insurance policy? IT services providers such as India’s Tata Consultancy Services Ltd. are building software platforms that furnish every business process needed and secure all regulatory approvals. A sister company, Tata Technologies, boasts 2,000 Indian engineers and recently bought 700-employee Novi (Mich.) auto- and aerospace-engineering firm Incat International PLC. Tata Technologies can now handle everything from turning a conceptual design into detailed specs for interiors, chassis, and electrical systems to designing the tooling and factory-floor layout.
Media Mania: The past year or so has seen a dramatic rise in the media options available for our already fragmented attention. TV channels are sprouting like weeds. Newspapers, flush with capital from IPOs and investments, are expanding operations. FM radio is hot. The Internet is seeing a second coming. The mobile beckons.
Put it all together and it boils down to one thing a heightened confidence among people that tomorrow will be better than today. This positive attitude and optimism makes all the difference. But there are many challenges.
TECH TALK India Rising+T