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Comments on India and the world
Yes, Indian hospitals (will) beckon
A. Sheshabalaya, Kalorama, New York.
October 1996

In metropolitan cities, private hospitals like Apollo, Escorts and Wockhardt have introduced state-of-the-art equipment along with the latest surgical procedures, often leading the way in Asia (in fields such as carotid stenting and heart shrink surgery).... The Apollo Cancer Hospital in Madras was India's first to be awarded an ISO-9002 rating....India's leading private hospitals already provide treatment to patients from Southeast Asia, the Middle East and South Africa…. Apollo Hospital plans to also seek patients from the US and Europe to undergo treatment in India.
Medical Tourism
Australian Broadcasting Corporation
February 20, 2005

So let's hitch a ride on one of those big white aeroplanes, full of medical tourists from the UK, Canada and the US, refugees from overstretched and expensive health care systems.Waiting with open arms and beds are a whole chain of new Indian healthcare corporations. The Escorts Group, Fortis Healthcare, Max Healthcare, Wockhardt, and the largest, the Apollo Group, which is the most aggressive in promoting its business abroad.
Indian pharma's next frontier
A. Sheshabalaya, Find-SVP Inc., New York.
March 1997

With the age of 'reinventing' drugs drawing to a close, Indian companies will have to redirect their efforts from process engineering to basic R&D.Some international companies are setting up joint ventures with Indian partners, or entering into marketing or R&D deals. With R&D personnel costs in India about 10-20% that of the US or Europe, it is estimated that it would cost only $35 million to develop a new drug in India, against $350 million in the West. R&D is clearly an area which has been targeted by the government, with tariffs on R&D equipment imports reduced to zero.
Product patent changes Indian pharma
Hindustan Times
December 20, 2005

Some research and development oriented companies supported the new regime stating that in the long term the country would benefit, as it would encourage drug development here. Nevertheless, some others said with drugs worth $60 billion expected to go off patent in the next few years, the smaller generic companies would still have a role to play in future by making copies of those drugs. The brighter side of the new patent regime was the focus on the huge talent pool available in the country to be utilised in R&D. Many felt India had both skills and cost advantage to become the hub for drug development researches, be it for new molecule discovery or for clinical trials.
Indian IT and Japan's auto Industry
A. Sheshabalaya, Find-SVP Inc., New York.
November 1997

Eventually, India's acknowledged goal is to become a software superpower. It aims to do with software what Japan did with the motor car.
Can Infosys do a Toyota ?
Rediff.com
July 12, 2005

It may seem like we are comparing apples and oranges but a comparison between the evolution of the Japanese automobile industry between 1960 and 1985 and the growth of the Indian IT industry, starting 1995, throws up some striking similarities. …James Abraham, director of the Boston Consulting Group, agrees. "There's no reason not to believe that the Indian IT industry could have as significant an impact on the global IT industry as the Japanese have had on the automotive industry.
Indian IT: The Key Difference
A. Sheshabalaya, ID-Side, Brussels
May 1998

One has been used to shoes, clothes, even machinery. Never before in history has a high tech, knowledge-intensive sector relocated overseas because of comparative advantage.
White-Collar Jobs Moving Abroad
Christian Science Monitor
July 29, 2003

No longer is it just Disney toys and Nike shoes made in Haiti and Indonesia.
Europe must get India act together
A. Sheshabalaya, European Parliament
January 23, 1999

Thus, even while India continues to require foreign aid, this should be now defined in areas where the assistance serves an enabling purpose and adds value to India's own efforts, rather than the classic Band-Aid approach…. In the current global and geopolitical pecking order, the danger is that not only will Europe continue to take India 'not too seriously', but that the Indians will also reciprocate.
India opts to decline aid
Financial Times
July 8, 2003

Some western aid officials believe that the decision (by India to stop receiving most bilateral aid) stems from New Delhi's view that European donors often packaged their aid with sermons about human rights, corruption and good governance.

Chirac to play catch-up in India
International Herald Tribune
February 17, 2006

"Nobody in India is even looking to the Europeans," the official said. "We have stated that the U.S. has a role in Asia, but nobody is going to state that Europe has a role in Asia"….
To this nation, a longtime leader of developing nations that is only now emerging as a global power, Europe has failed to treat India as a new equal and to engage in the flattery that others now lavish upon it.
US downturn will not harm Indian software
A. Sheshabalaya, Financial Times
May 2, 2001

Indian software growth will, however, also be a result of … an emerging shift in attention to Europe, which has so far been under-represented in the Indian software export basket.
Steel is different from software: Premji
Reuters
January 28, 2006

Wipro planned to buy European firms with focus on the retail software market as its business in the region grows 1.5 times faster than in the United States.
Beyond IT: Pharma
A. Sheshabalaya, Rising Elephant
March 2004

One of the best examples of this, and the sector most likely to have an IT-like impact on Western jobs over the next decade, is pharmaceuticals.
Congressman Tauzin … is clearly unaware that India is already one of the world's largest producer of generics and bulk drugs, with 60 FDA-certified manufacturing plants (the highest number outside America)…. Indian firms could be selling low-cost generic versions of nine of the top 20 drugs in the US, propelled by the inevitable pull from Americans to contain soaring costs of prescription medicines. Indeed, if Congressman Tauzin is ever in need of a pain-killer, an antibiotic or a hypertensive, it is very likely that he is already using Indian-made medicines…
India Emerges in Drug Services
Chemical & Engineering News
January 31, 2005

Western demand for Indian drug ingredients and research services is surging…. Manufacturing facilities operated by top Indian companies are typically world-class.
In August 2005, India announced that it had received 1,312 applications for pharmaceutical product patents, second after the US's 2,111 applications, but 25 percent more than Germany's 1,090 applications, and far ahead than Britain and Switzerland, which received 573 and 538 applications respectively.
Indian Pharma's Global Politics
A. Sheshabalaya, Rising Elephant
March 2004

After the success of the AIDS drugs-for-Africa campaign, few doubt any longer that Indian firms have the political savvy for playing hardball.

AIDS Drugs Threatened
New York Times
March 7, 2005

India's Parliament is about to take up a proposed law that could affect sick people the world over. India is the leading supplier of low-cost generic AIDS medicine…. Seldom has India's Parliament considered anything of such global import. If Parliament can preserve India's ability to provide generic versions of these medicines, it will make the difference between life and death for millions of people at home and abroad.


Generic Drugs and Their Approval
IP Frontline
August 14, 2005

Cipla became the first company in the world to benefit from the issuance of compulsory license (CL) for import of drugs issued after 30th August, 2003 WTO decision to allow flexibilities in the patent laws to deal with health emergencies. The CL was issued by the Malaysian Govt. to a national firm, Syarikat Megah Pharma Vaccines, to import specified anti-retroviral patented drugs in different doses from Cipla. These drugs are Didanosine and Zidorudine. The patent for the first drug is held by Bristol Myer Squibb and the other drug is held by GSK.

Clinton Urges Help for Kids With AIDS
Associated Press
February 18, 2006

"We've had a three year partnership with Cipla, and because of them an enormous number of HIV/AIDS-infected people are alive," (Clinton) said.

Up the value chain: others' products
A. Sheshabalaya, Rising Elephant
March 2004

According to Marc Herbert, Sierra's executive vice president, "packaged software is the next offshore sweet spot." The report also noted that "the majority of large Indian offshore services firms" increasingly have "a broad base of application development skills to draw from." Days later, Sierra announced the expansion of its Oracle Integration Centre of Excellence in India "for creating a hub specialising in integrating Oracle E-Business services with other software packages." PeopleSoft followed suit, with an announcement by Ram Gupta, its Indian-born executive vice president of products and technology, that it intended to add 1,000 staff to its 400-strong Bangalore operation opened in May 2003, and now integrated with the Indian operations of J.D Edwards, which it also acquired during the year.
Oracle to expand India operations
PTI
March 15, 2005

Oracle's Senior Vice-president for Asia Pacific Keith Budge said … India would play a key role in the ''Project Fusion'', a grand initiative by Oracle to replace the existing JD Edwards and PeopleSoft and make a single product having the features of all solutions offered by the three companies after 2013.
Cutting-edge vaccines to biotech
A. Sheshabalaya, Rising Elephant
March 2004

Such cutting-edge efforts are also apparent in fields beyond vaccines. In August 2003, Wockhardt launched its own recombinant human insulin.
Meet India's wealthiest woman,
Reuters
April 7, 2005

The patented fermentation reactors of another Indian company, Biocon, have transformed it, from a small enzyme maker into a drug firm challenging global insulin makers such as Eli Lily and Novo Nordisk. 'Insugen', Biocon's latest launch, is the world's first recombinant human (r-DNA) insulin using a unique Pichia Expression - a yeast expression system that secretes pro-insulin in an extra-cellular manner and thereby enables an elegant purification process for insulin
Up the value chain: services
A. Sheshabalaya, Rising Elephant
March 2004

Like software, there is also a concerted effort by Indian companies to systematically move up the BPO value chain. Following up their massive global lead in Capability Maturity Model CMM certifications from the US Software Engineering Institute (see Chapter III), Indian firms have also begun concerted COPC (Customer Operations Performance Center) and Six Sigma initiatives for their dedicated BPO facilities (e.g Wipro's Spectramind, Satyam's Nipuna and Infosys' Progeon).
12 Indian Firms on Best BPOs List
Times News Network
April 13, 2005

Indian companies accounted for four of the Top 10 and twelve of the Top 25 best managed BPO vendors, according to the Black Book of Outsourcing (published by Wiley). In addition, India accounted for the bulk of operations of ten of the Top 12 vendors, and nineteen of the Top 25.
IITs and US politics
A. Sheshabalaya, Rising Elephant
March 2004

While such issues will continue to erode simple homilies and contexts about territorial delimitation, what is equally clear is the fact that, in the cold calculus of American electoral politics, both the votes and money of Indian-Americans will prove a continuing, complicating counterweight to the voices of laid-off American tech workers….Such complexities have emerged in the US presidential elections, too. Democratic contender Gen. Wesley Clark, for example, was forced to withdraw comments from his Website inviting Indian IIT graduates to take up American citizenship and start-up software firms.
US Congress heaps praise on IITs
The Economic Times
April 28, 2005

The Indian Institutes of Technology, in particular, and the Indian-American community, in general, came in for impassioned praise from the US Congress -- the first time the US Congress has honoured a foreign university in this manner -- for their significant contributions to society in every profession and discipline. The US Congress passed House Resolution 227 ... praising the stellar work done by IIT-ians in all walks of life.
Market + Industry = Global Economy
A. Sheshabalaya, Rising Elephant
March 2004

But the lift-off is also broad based, making it clear that India is riding a wave as both a future global industrial powerhouse and a hotspot market for international business.
Alstom invests in India facility
AFP
May 31, 2005

French engineering giant Alstom SA said it would invest 39 million dollars in starting up a research centre with Indian software exporter Infosys Technologies that will employ 300 engineers….
With Asia's manufacturing growth, local markets are booming. India will be the fourth-largest car and third-largest aircraft market in the next 10 years. It will also be a huge market for power generation and distribution.
How they all fell, for Dell
A. Sheshabalaya, Rising Elephant
March 2004

While ample examples of the media's propensity for temporarily-comforting clichés about relocation (and India itself) are provided through the book, an especially damaging instance, however, is the trend, especially since end 2003, to overplay the smallest signs of reversal in relocation. Such a habit is expected to strengthen in the years ahead, as powerful forces associated with relocation increasingly manipulate gullible journalists. Thus, the months of November and December 2003 saw a veritable blizzard of news articles, which grossly exaggerated routine and relatively-small adjustments by two American giants, Dell and Lehman Bros., with respect to their Indian operations....
On November 25, an Associated Press headline proclaimed 'Dell Returns Corporate Tech Support to the US', following an alleged "onslaught of complaints". This was quickly picked up by the international media and widely reported....The next day 'Computer Business Review', in an article titled 'Dell Calls Switched Away from India', claimed Dell was "re-routing customer calls to away from India, following complaints over the company's level of technical support." Even the authoritative 'Financial Times' could not resist the headline 'Dell cuts back India customer service venture'....
The more relevant information, completely absent from 'Computer Business Review' and many other media reports (and never clarified): "Charlie Cortese, Lehman's IT chief, was quoted as saying that despite moving the 26 help desk jobs back to the U.S., by 2005 Lehman may double to 900 the number of people working on its software design and support projects at its Indian IT partners, Wipro and Tata Consultancy Services."
Dell to open another call centre in India
Times News Network
August 10, 2005

Dell, the world's largest maker of PCs, is set to open another call centre in India, and it is planning to hire around 2,000 people over the next few months. The centre is expected to be operational this year....
The Mohali centre, which was opened a few months ago by Dell chief Michael Dell himself, already has about 1,000 people....
By the end of this year, Dell is expected to have around 10,000 people in India (up from around 8,000).

Dell to Double Its Staff in India by 2009
Associated Press
March 19, 2006

Dell Inc. plans to double the number of its employees in India to 20,000 in three years, Chairman Michael Dell said Monday, in what appeared to be moves by the world's largest personal computer maker to beef up its presence in one of the world's fastest growing markets.
Although most of the new hiring will be made at the company's call centers, there will also be substantial recruitment at the its product testing center and a possible manufacturing plant.
The Round Rock, Texas-based company currently operates four call centers in India, a product testing center for corporate customers and a global software development center. Some 10,000 people are employed at these facilities.

Up the value chain: own products
A. Sheshabalaya, Rising Elephant
March 2004

For example, Ramco's Marshall ERP program was test-bedded in the premises of its parent, a large Indian building materials company....
For these fast-growing companies, even otherwise unsuccessful efforts at product development were not wasted efforts.
Scrambling up the Development Ladder
Business Week
August 15, 2005

"Ramco is being reborn with a new business model that could knock some of the established players off balance. Instead of selling packaged applications for accounting and manufacturing, which often don't fit a particular business, it builds software components that can be mixed and matched for a more custom fit."
There goes another alternative
A. Sheshabalaya, Rising Elephant
March 2004

Though recipients of the Western white-collar job exodus range from China and Russia to the Philippines and Mexico, it is clearly one country, India, which stands out….On the other hand, India's massive population advantage will continue to prove a competitive handicap for smaller countries such as the Philippines, Mexico and many others.
S Africa to recruit Indians for skilled jobs
Reuters
November 4, 2005

South Africa plans to recruit teachers, doctors and other professionals from India to help address a skills gap and accelerate the roll-out of housing and basic services, a minister said on Thursday.
FDI = Foreign Director Investor, too
A. Sheshabalaya, Rising Elephant
March 2004

In just over a decade since economic reforms, India's net international investment position is already heading towards parity (balancing of inward and outward investments); last year, India's outward foreign investments were close to two-thirds of foreign direct investment into the country. In 2004, Indian companies have plans for $2.5 billion in overseas acquisitions; this figure is just the beginning...
Such developments will no doubt further confuse and complicate the core debate about India's pull on white-collar jobs. On the other hand, they also underline India's ambitions to not remain content with its status as a global back-office, but use such additional strengths to fuel its drive into becoming a world power - incapable of being locked into any box of definitions. The best evidence of this is the remarkable success by Indian manufacturers on the competitive but highly-protected Western European market (in Britain, Germany, Spain, Italy)….
India Inc goes global
Asia Times
November 25, 2005

Buoyed by the inroads made abroad by its software, biotech, auto ancillary and oil companies, India has dropped the tag of being just a foreign direct investment destination and is increasingly donning the mantle of a major foreign direct investor. And the investments span not only across the developing world, but even in developed nations such as the US, the United Kingdom and Germany.

Overseas deal rush by Indian companies
Financial Times
December 28, 2005

Indian companies are ending 2005 with a flurry of overseas deals, capping a trend of the past year that saw a record $10bn worth of mergers and acquisitions involving Indian assets, a 52 percent rise over the number of deals completed in 2004….

Fringale indienne sur les occidentales
AFP

January 29, 2006

Et Kamal Nath de prévenir : "bien sûr qu'il y aura d'autres "acquisitions majeures par des groupes indiens. "Nos investissements en Grande-Bretagne l'année dernière ont été plus importants que les investissements britanniques en Inde, idem pour l'Australie."
An Indian manufacturing challenge ...
A. Sheshabalaya, Rising Elephant
March 2004

More significantly, drawing upon the lead in competitiveness of its homegrown multinationals (and its broad-based strengths in science and engineering), Indian manufacturing businesses are also vigorously globalising….
As the examples above illustrate, the Elephant's ascension is comprehensive and its impact on the world economy will clearly be sweeping. While white-collar skills build high-value leverage on world markets, blue-collar businesses are also riding the wave.
Indian manufacturers beat global peers
DNA India
November 30, 2005

Indian manufacturing companies, often overlooked as a competitive force in the global manufacturing arena, are quietly enjoying gross profits and sales growth rates that are nearly twice that of global manufacturers, according to preliminary findings of a global benchmark study by Deloitte Touche Tohmatsu….Deloitte's preliminary benchmark findings reveals that industry capabilities in areas such as product innovation, manufacturing quality, and process innovation are driving the performance of Indian manufacturing companies," says Kumar Kandaswami, manufacturing industry leader, Deloitte Touche Tohmatsu India Pvt Ltd. The study also found that Indian manufacturers intend to move aggressively to compete globally.

Davids and Goliaths, for now A. Sheshabalaya, Rising Elephant
March 2004

On their part, Indian IT firms have become increasingly explicit about their confidence to take on international competitors.

TCS takes aim at IBM, doubles US staff
Reuters

December 15, 2005

Tata Consultancy Services plans to more than double its US staff next year in an expansion that takes aim at a key market for IBM and Accenture Ltd.

Indians in, or work out?
A. Sheshabalaya, Rising Elephant
March 2004

In the medium-term, there will also be an uneasy trade-off between preventing foreigners traveling to work in the West on H-1B and L-1 visas, and such work being simply moved offshore. This is a straightforward prospect, given the increasing sophistication in delivery of offshore IT services, and one with arguably worse impact on US jobs…."If people cannot go to where the business is, business will eventually come to where the people are."
High-Tech Visa Plan Dropped From Bill
Associated Press
December 19, 2005
A Senate-passed measure to add more visas for foreign workers in high-tech and specialty fields was dropped from a budget bill that passed the House early Monday, disappointing high-tech and manufacturing firms in search of skilled workers."This is very, very disappointing," said Sandy Boyd, a vice president at the National Association of Manufacturers. "What's distressing about this, and what the Senate clearly understood, is there is a real global competition for this work and for these employees, and the question is not whether the work is going to get done, it's where is the work going to get done. We've missed a real opportunity by not ensuring the work would be done here."
Globalization's 'Unexpected Winner'
A. Sheshabalaya, Rising Elephant
March 2004

India accounts for 60 percent of the offshore white-collar jobs market. Its presence in the growing pool of high-value jobs leaving America seems set to accelerate.... Though masked by the frenzy of the dotcom boom, white-collar jobs have been relocating to India for over a decade, and today's strong pull from there is a follow-up round of consolidation. Secondly, such jobs do not simply concern call centers; in India, in particular, they have ended up with Indians designing integrated circuits, wireless solutions, composite materials, genetic engineering tools, luxury cars, jet engines and complex econometric models; others are now probing still-newer areas such as filing tax-returns, interpreting MRI scans and researching Wall Street firms. Several such jobs will not return because few Americans are being hired for them, and fewer will choose to study in these areas in the future. In addition, the Indian challenge to technology jobs has deep roots. The incentives for such a shift are not going to disappear, with or without Western economic recovery; instead, they are likely to strengthen with time….In brief, this is the unexpected flip side of 'globalisation'.
Coming and Going
US News & World Report
January 23, 2006

It doesn't take an economics degree to conclude that one of the main U.S. exports of the 21st century is likely to be jobs. And by many accounts, India is at the head of the receiving line….As the offshoring trend matures, U.S. firms will contract out increasing amounts of white-collar work like accounting, drug research, technical R&D, and even cartoon animation….No one expects the trend of offshoring to slow.

A Reversal of Tide in India
Washington Post
February 28, 2006

"If you want to be in the latest trends, you have to be in India," said Dutt Kalluri, who heads data warehousing and business intelligence at the information-technology division of Larsen & Toubro Ltd., India's largest construction and engineering company. "Technology development happens in India. Technology consumption happens in the U.S."
The global meaning of mark cap
A. Sheshabalaya, Rising Elephant
March 2004

Currently, two of the largest Indian software firms (Infosys and Wipro) are ranked roughly on par with American giant EDS in US stockmarket capitalization (in spite of at least 5-fold lower headcounts). This will also be the case after the expected listing in the near future by TCS, India's largest software exporter. …The US stock market performance of these Indian firms, central players in the relocation process, again highlights the growing difficulty of addressing relocation through territorial considerations ; American funds are some of their biggest investors, and benefit directly from their gains through more relocation. And this process is by no means over.
Out of India, in footsteps of Mittal
International Herald Tribune

February 13, 2006

Leading outsourcers in India, like Infosys, have recently studied buying companies like Electronic Data Systems, which is based in Texas…. Infosys posted sales last year of $1.6 billion, compared with $20 billion for Electronic Data Systems. But Infosys can consider such a move because investors, favoring its profitability and growth, have pushed its market value up to $18 billion, exceeding that of EDS, at $13 billion.…Ironically, foreigners are the driving force behind India's new outbound ambition. Global investors are pouring money into Indian shares, pushing the benchmark Sensex index past a record of 10,000 points last week. That money effectively finances Indian companies ambitious to buy Western ones.
... and its disruptive implications
A. Sheshabalaya, Rising Elephant
March 2004

Similar (disruptive) challenges can be found elsewhere, for example, the eventual impact of India's aggressive emergence in markets such as automobiles - its drive ultimately anchored in the country's low-cost, rupee base. The giant Tata group, one of India's leading and fast-globalising automotive companies, is now planning to launch a car which would be priced at below $2,200. According to group Chairman Ratan Tata, "despite its seemingly impossible pricing" (less impossible, of course, in PPP terms) the car "will offer safety and all-weather protection features that the traditional passenger car offers."
Rs 1 lakh car to have a tsunami effect: study
PTI
February 26, 2006

The entry of a Rs 1 lakh car in the Indian market, being developed by the Tatas, would lead to a 'structural shift' in the dynamics of the automobile industry because of its 'tsunami-like' effect, according to J D Power.
Columbus Revisited
A. Sheshabalaya, Rising Elephant
March 2004

Many Indians, as shown in the book, see the country's leap to the frontlines of the Knowledge Economy vindicating its status in the 19th century as one of the world's richest countries, the source of mathematics and many sciences apparently only 'rediscovered' by the Europeans, but in the failed search for whose treasures, Columbus discovered America.
Bush rolls out new India map
Indian Express
February 23, 2006

In a speech that lasted over half an hour, Bush set the tone right in the beginning: “More than five centuries ago, Christopher Columbus set out for India and proved the world was round. Now some look at India’s growing economy and say that that proves the world is flat.”
An Indo-US special relationship
A. Sheshabalaya, Rising Elephant
March 2004

At present, a strategic alliance with America is a clear priority. The speed of progress of this alliance is breathtaking and its implications profound.
George Bush in India - what is success?
BBC News
February 28, 2006

In the 20th century, Europe was at the heart US foreign policy. It tried to manage Europe via its "special relationship" with the UK.
With talk of this being an Asian century it would seem sensible for the US to find a similar "special relationship" there....
India with it's hostile neighbours, global ambitions and huge aspirant middle-class would seem a perfect choice.
Friends in High Places
A. Sheshabalaya, Rising Elephant
March 2004

Powerful (political) support for India is expected to come from non-IT American businesses, for who the fast-growing Indian market is a major lifeline. In October, 45 members of the US Congress urged Indian Prime Minister Vajpayee to authorise purchase by Air India of 22 Boeing aircraft (with an option on another 13), noting that it would not only serve as a 'great demonstration' of 'strengthened' Indo-US commercial ties, but also "provide the struggling economy (of the US) with a shot in the arm when it needs it most."

Giant infrastructural projects have indeed begun lift-off in other areas....Such efforts, aimed directly at what were hitherto bottlenecks on development (that is, in fields other than software development), will serve to further accelerate economic growth over the next decades....
All this will of course intensify opportunities for Western business. But it will also increase interdependency.
Nuclear Deal Key to Boosting Business Ties
Associated Press
February 28, 2006

"One reason we are here is because we hope the strategic relationship will continue to grow," Lee Whitney, Lockheed's vice president for strategy and marketing communications, said during a recent New Delhi defense show that drew more American weapons makers than ever before.
Then last month, state-run carrier Air India placed an order to buy 68 planes from Boeing Co. in a deal valued at $11 billion at catalogue prices.
"The Air India deal is only one example. There will be many others," said Montek Singh Ahluwalia, the co-chairman of the India-U.S. Economic Dialogue, an official group that brings together representatives from both countries….
India will spend about $150 billion annually just in infrastructure projects such as roads, bridges and airports _ areas where U.S. companies could step in.
Your IT, our market
A. Sheshabalaya, Rising Elephant
March 2004

Whether it is consumer goods, aircraft or building materials, access to the massive and fast-growing Indian market by Western manufacturers will be a trade-off for access by Indians to supply technology services to the West. The Indian view is simple: the West cannot be expected to participate in tomorrow's growth opportunities, without conceding something in return. For rapidly developing India, such participation is clearly no longer about philanthropy, NGOs, warm feelings and foreign aid.
Bush: U.S. Should Welcome Competition
Associated Press
March 3, 2006

President Bush urged Americans worried about a U.S. job drift to India and other countries to welcome, not fear, competition with this rapidly growing nation of 1 billion.
"The classic opportunity for our American farmers and entrepreneurs and small businesses to understand is there is a 300 million-person market of middle class citizens here in India," Bush said Friday during a discussion with young entrepreneurs at a business school here, "and that if we can make a product they want, that it becomes viable."
A rare value-volume cocktail
A. Sheshabalaya, Rising Elephant
March 2004

Instead, rather like Wal-Mart, (India) contributed a wholly unique combination of volume and value, skills and scale, to commodify the New Economy.
India turns to the Middle Kingdom
Business Week
March 8, 2006

According to Girija P. Pande, Asia-Pacific Director for TCS, ... "This is a business of skills and scale."

After IT,  Pharma
A. Sheshabalaya, 

Rising Elephant
March 2004

 

The challenge from India is clearly more than software or back-offices. India has positioned its skills offering across a sweeping range of white-collar sectors. However, like IT, these skills are not only directed at servicing Western employers, but also steadily building up the country's own comprehensive high-technology industrial base. One of the best examples of this, and the sector most likely to have an IT-like impact on Western jobs over the next decade, is pharmaceuticals.

Drug firms line up US$ 2.5 billion for shopping abroad

Business Standard

April 17, 2006

 

Indian pharmaceutical companies are sitting on a war chest of at least US$ 2.5 billion for overseas buys, mostly in Europe. This is after they acquired companies worth almost US$ 1 billion in the continent this year....

Even as big Indian pharmaceutical companies have been breaking their own records of big-ticket acquisitions in Europe, the trend is set to become stronger as firms are now aspiring to become global players, no longer fighting shy of raising money to create war chests.

Catching up with the IBMs and Accentures

A. Sheshabalaya, 

Rising Elephant
March 2004

 

Such Indian firms already share customers with their international rivals (such as Accenture, IBM and EDS), and their presence is rising. 

Will bytes get bigger ?

Financial Express

April 24, 2006

 

 

Transformational multi-service deals where they can charge based on the value delivered rather than effort-based pricing model seem to be emerging the key.

“These deals reflect maturity of Indian industry where they are moving away from mere labour arbitrage and can rub shoulders with global majors like IBM and Accenture,’’ says Gartner India research vice-president, Sujay Chohan.

 

Of Belgium, Nepal and some others

A. Sheshabalaya, 

Rising Elephant
March 2004

 

But the complex implications of miscalculating, underestimating, or being simply unaware, of, changing geopolitical realities, were best illustrated by the near-collapse of the government of Belgium in 2003 - about the moral consequences of exporting a few hundred machine guns to India's neighbour Nepal, fighting a Communist insurgency. Over several months, much of the Belgian print and TV media were near-surreally convulsed amidst their small country's exaggerated sense of self-importance. While the possibility of external military aid was confined to Europe's classic Big Brother the US (or Britain), there were barely a handful of references to India and China; those that did, usually mentioned Nepal's geography, sandwiched as the country is between the two giants. Rather than the make-or-break implications of a consignment of small arms, no experts seemed aware about the real political issue (China and India), or the extent of heavy, high-technology weapons flooding in from India.

Indian blow for beleaguered king of Nepal

Daily Telegraph

April 24, 2006

 

 

The position of Nepal's embattled King Gyanendra weakened further over the weekend when India effectively washed its hands of him.

The move was a rapid reversal of Indian policy after the country, regarded as the most powerful outside force in Nepali politics, at first welcomed the limited compromise Gyanendra offered to anti-monarchy protesters on Friday.

 

Myths about 'creative' and 'high-end'
A. Sheshabalaya, Financial Times
July 26, 2004

It is wishful thinking to believe the looming Asian textiles juggernaut can be countered simply by focusing on "high-end products . . . where China and India pose a much smaller threat." It appears that the EU Commission experts cited … have yet to read about the pending acquisition of Germany's Trevira by Indian conglomerate Reliance….As previously with information technology and call centres, and now with textiles, pharmaceuticals and much else, India's increasingly successful (but quiet) economic ascension will be helped by the perception that the west has a monopoly on the "really creative and innovative stuff".
Creative industries head east
BBC Newsnight
January 16, 2006

Conventional wisdom used to say that emerging economies would make the "cheap" stuff, while advanced nations would do the complicated creative work. But that notion has never really been true…However, what about the cutting-edge creative work? Well, we found an example of a New York-based company filming American adverts in India; and then there's Shamin Desai, one of India's hottest ad directors, and a man who would not look out of place among Britain's ultra trendy set.
Unexpected new predators
A. Sheshabalaya, Yale Global
September 20, 2004

Fatefully, such competitors are now also emerging out of India, which has begun to redefine the global corporate landscape, well above the factory floor….
It is unlikely that France's industrial policy pundits, looking into their rear-view mirrors, have any idea about what to do with these new actors. Are they opportunities or threats?
A wand is not required to see that a close cousin to the concept of "competitiveness zones" is the 1980s policy of "national champions."
Steel giant tries to get even bigger
New York Times
January 28, 2006

Some French officials expressed concern about the bid (by Indian-owned Mittal Group for Arcelor), in part because they said they received the news on Friday morning with no warning. French politicians said they were worried about the loss of a European steel champion, even though the company is based in Luxembourg, because Arcelor employs many French workers and has deep roots in France.

Fringale indienne sur les occidentales
AFP
January 29, 2006

«Notre impératif, c’est de bien comprendre l’importance des nouveaux joueurs » qui participent à l’économie mondialisée, selon M. Charlès (PDG du groupe français de logiciels Dassault Systèmes.
Outsourcing - A Hollowing Effect
A. Sheshabalaya, Datamation
October 15, 2004

You cannot have an economy that does not have a skills base of its own…. If these skills go someplace else... there could be a very big snapping of elasticity of the way it held everything together.
High-tech talent flows back to India
Boston Globe
August 8, 2005

"Some business leaders are worried that the immigrant Indian entrepreneurs who helped fuel the US technology boom might now start companies in India, and take whole classes of jobs with them."
Hidden American Jobs in Insourcing
A. Sheshabalaya, Datamation
November 11, 2004

Ashutosh Sheshabalaya … says … that many of the foreign-based firms that are setting up camp in the U.S. could help curb this trend by creating mid- and high-level management positions.
New MBAs finding big time
USA Today
January 19, 2006

MBAs are hot, again….Even the outsourcing of jobs to places such as India is driving demand for MBAs. The (US) Labor Department estimates the outsourcing industry will need 2,000 senior executives this year, up from 100 in 2000. By 2012, it will need 9,500.
Acquisitions will drive new India
A. Sheshabalaya, Gurusonline
May 2005

More interesting is that in new non-IT sectors, India is driving into Europe almost wholly via acquisitions. In pharma for example, the entire generics business of RPG Aventis of France is now in Indian hands. In automotive components, Indians have bought Germany's Carl Dan Peddinghaus (one of the world's largest axle companies), Britain's GWK Group, and also made key acquisitions of units of Dana Spicer. Recently, Escorts of India took over Poland's Framtrac Tractors, while Crompton Greaves acquired the blue-chip Belgian transformer company Pauwels International. Once again, a sample of good examples.
India: A Quiet Shopping Spree
Business Week
October 10, 2005

Surprisingly, the biggest plays have not come from India's vibrant tech and outsourcing sector, which, analysts say, has a sound domestic business model and doesn't see the need to travel boldly abroad. The big moves are coming from more traditional industries: telecommunications, pharmaceuticals, auto parts, and other manufacturing businesses that want to secure export markets.

Overseas deal rush by Indian companies
Financial Times
December 28, 2005

Indian companies have also turned their attention overseas as they hunt for niche companies to get closer to customers or seek global scale by seizing larger foreign targets.

Cash-rich India Inc on acquisition trail 

in Europe
Times of India
March 18, 2006

From a land of cheap labour for shipping low-end jobs to corporate predators, India Inc.'s profile has undergone a sea change in Europe - thanks to a string of recent big-ticket acquisitions....
Even as Mittal Steel's takeover bid remains at an initial stage, a host of Indian firms have quietly risen from the shadow in recent months and taken over European companies representing areas like drugs, energy and chemicals.

How auto industry is moving to India
A. Sheshabalaya, EU Technopolicy Helsinki
June 17, 2005

In brief, unlike the classic (China- or for that matter Brazil/Malaysia) model of developing-country industrialization, where FDI kick-starts a blue-collar, low-cost global manufacturing base, and then this begins a drive up the value chain to white-collar competencies, India is doing the reverse, and this is probably the most violent aspect of the paradigm shift confronting the West….But wait a moment. Basell supplies half Europe's medical grade plastics, but is also a major player in automotive polypropylene. Add to this Trevira, and we all know how important polyester fiber is for the car industry, as are the axles supplied to the likes of Volvo and Renault from Bharat Forge's Peddinghaus, or even the clutch and gearbox assemblies from Sundaram's Dana Spicer unit. Now take the fact that the largest steel company in the world, Mittal, is not just managed by an Indian (like Janssen Pharmaceutica or even Vodafone), but 98% owned by him. And what about precision-machining and injection moulded plastics - for rapid prototyping auto-components? Last month, Amtec Precision, America's largest Gildemeister/CNC shop, whose customers include Caterpillar, GM and Ford, was taken over by India's Ucal. Finally, add the fact that auto-electronic giants like Bosch and Delphi have their largest R&D operations outside their home markets, where? In India, of course, where employment is now growing faster too, than back at home. And what do you have for the global auto industry ? Another Great Reversal, is it not ?
On the fast lane to Chennai
Los Angeles Times
December 7, 2005

The next wave of globalisation is swelling here in Chennai…. This new wave is not about Gap T-shirts or Dell laptops, the poster children for the light industries that already have global supply chains. And it is not about software and/or call centers, the industries for which India is famous. Instead, this new globalisation is about heavier manufacturing, particularly cars. Detroit's panicking firms know it. Cars? They are not what spring to mind when you say ''Indian economic miracle''.

Cummins to export to S America, Europe
rediff.com
January 16, 2006

To drive home the benefits of lower manufacturing costs in India, Cummins India Ltd and Cummins Westport Inc will be exporting B Gas International natural gas engines to locations such as South America, Eastern Europe and South-East Asian nations, a company official said on Monday….Young said India not only provided cost benefits but also high-quality manufacturing and relatively cheaper components.
Don't subsidize losers
A. Sheshabalaya, Yale Global
August 2005

Ironically accepting India's centrality in the white-collar jobs debate, as well as the inevitability of its rise as a technology power, may provide some new choices for embattled American IT workers….However, such an evolution still faces strong cultural and business practice barriers. It may therefore be worthwhile for Western governments to encourage Indian IT firms to hire locally, instead of simply subsidizing the kindler and gentler landing of their more vulnerable "international" competitors.
Coming and Going
US News & World Report
January 23, 2006

A small crosscurrent is beginning to flow, however. While some of America's most well-known companies are suddenly rushing to India, the big Indian offshoring firms that started the whole trend--companies like Tata Consulting Services, Wipro Technologies, and Infosys--are starting to hire in the United States, where some of their biggest customers are based.
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