Erik Rostad - Jamila Yancy - Austin Miles - Joey Tomarchio

Final Thesis Answer
I. Introduction
The purpose of our trip was to study entrepreneurship in India. We were to take a broad view of the economic, political, social, and educational aspects of the country to provide a macro view. At the micro level, we were to take a detailed look into the government's role in entrepreneurship. Did the government help entrepreneurs in the past? Do they have programs in place to assist entrepreneurs in the future? What is the role the government should take now with entrepreneurs as the economy booms?

We believe that the government is taking the right steps to provide an atmosphere conducive to innovation and entrepreneurial ventures. Even in India's recent history, the government has offered incentives such as tax breaks, subsidies, and small venture capital funds to assist with entrepreneurship. In addition, the Indian government established the Technology Institutes that are now some of the most prestigious in the world. Although steps have been and are being made, India continues to be bogged down with bureaucracy.

The current situation with the new Bangalore airport clearly highlights some of the major issues in India. Next year, a new airport will open in Bangalore. This will be a state of the art facility costing $430 Million dollars. Contractors are busy at work on this facility that will be one of the first to accommodate the new double-decker Airbus jet. This airport will be a new international hub that will further increase Bangalore's importance in the world. The only problem is that the road to the airport is not complete. The government in mired in bureaucracy and a road to this new beautiful airport is being held up.

This is a fitting picture of India today. As the economy reaches new heights and innovations in technology bring the world's best companies to India, the country still faces many hurdles in government and infrastructure. The degree to which the government can provide an atmosphere allowing the talented people of India to thrive will greatly affect the future growth of the country.

II. Entrepreneurship
We found that the definition for entrepreneurship in India closely fit our concept of entrepreneurship. Through a small sample of surveys and from company and university visits, we believe that India as a whole thinks of entrepreneurship as the starting of a business to meet a market need. As different countries define entrepreneurship in specific ways, we wanted to be sure that we were starting from the same framework.

III. India's Transition
India is in the middle of a technical revolution. They are in a state of deregulation and growth, which is leading to opportunities for all. Many are starting businesses out of need and others are able to take advantage of the opportunities that are cropping up because of the growth and investment in the their country. Women are gaining more important roles and changing the way the Indian society views them. They are running their own businesses, climbing the corporate ladder, and leading departments at educational institutions. Educational opportunities are becoming easier to attain. The need for educated employees is increasing, so institutionalized education will be ever more important.

IV. India's Future
Venture Capital firms are beginning to invest heavily into India. The latest numbers show that $800 Million is being invested each quarter. The majority of these VC firms are investing in technology and BPO companies. Also, a small but growing angel investor community is beginning to arise. The wealth generated from the IT sector is providing many people with discretionary income to invest in potentially lucrative ventures.

Opportunities abound for entrepreneurs, especially in bringing essential services online. Other established countries are already saturated in this respect but India’s vast and largely untapped market is ripe for those willing to invest. The government has acknowledged its role in supporting entrepreneurs and foreign direct investment and is making the appropriate policy changes. The number of licenses required is decreasing and the time necessary to start a new business been cut in half in the last couple of years. There still exists a restrictive bureaucracy, which needs to be factored into investment decisions.

V. Microfinance
One word that we heard over and over was microfinance. Microfinance, or micro-credit, is the concept of providing loans to the world's poor so that they can purchase the necessary items for which to produce and sell a product or service. The loans are then paid back with profit made from their endeavors. So far, more than $4 Billion has been dispersed as micro-credit throughout the world. Of this amount, more than 98% of the loans have been repaid in full.

The key point in continually hearing about microfinance was that entrepreneurs in India are not just looking to meet the needs of the wealthy elite in India. We saw a more holistic approach in the realization that India cannot leave the less fortunate behind. It is also an economic necessity that the entire population comes along for the ride instead of just the wealthy few. What this means in the long run is that if companies in India can come up with a business plan and cost structure in which the majority of Indians are included, they will be able to take that business anywhere.

VI. Summary
The Indian government is aware of the role that entrepreneurs play in the growth of an economy and are making the right steps to encourage entrepreneurship. The main problem is the legacy of the 'license raj' and the bureaucracy that this created. It was amazing to see the infrastructure when entering a company's campus here in India. While power outages are common in India, these companies had their own power source of back-up generators. While the streets of the city were dirty and crowded, the streets inside these campuses were immaculate and clean.

Before we departed on our trip, we heard Ambassador Jassel state that the success of India's IT sector was a result of the government not having a hand in the business. The government's role should be to provide the basic infrastructure necessary for an entrepreneur. Anything more than that will only hurt the economy. Indian entrepreneurs have shown that they have the necessary skill and talent to start world-class operations.

According to the latest Global Entrepreneurship Monitor report, the % of GDP based upon entrepreneurial activity in India is at a relatively high 17.9%. Many of the entrepreneurial indictors would suggest that this number should not be so high. What we learned on this trip is that the reason this level is so high is due to the entrepreneurial activity based upon necessity. When pushed into a corner, one has no choice but to fight their way out. We see the future entrepreneurial activity in India based more upon opportunity than necessity.
[Group 2]


May 31, 2007
Reliance is one of the largest conglomerates in India and is soon to be one of the largest Internet service providers in the world. They currently operate in the energy, financial and communications industries and provide a range of products and services for both commercial and consumer markets. Reliance has a strong presence in India and their advertising is seen everywhere. (See photo on right of Reliance HQ)

We learned that in the telecommunications industry, entrepreneurship was near zero, due to the high cost of purchasing the licensing necessary to enter into the market ($530 million). In addition to this cost a company must wait in queue to receive bandwidth, which it may never receive. A company must also have enough corporate infrastructure to operate should it receive its requested bandwidth. Communication infrastructure is not the place for entrepreneurs, but Reliance Communications is doing well. The tour of their facilities was very impressive and seemed like a different world compared to the poverty witnessed on the drive to the Reliance campus.
[Austin]


Bollywood
Last night, a few of us went to a movie at the local theatre here in Mumbai. The film industry in India is thriving. It is called Bollywood and it is centered in Mumbai (Bombay). The movie we saw was called Metro and there were some neat cultural learning points.

First of all, the movie was in the Hindi language, yet every two or three minutes, a phrase would be said in English. This helped us understand what was going on since there were no English subtitles. Also, there were a number of advertisements before the movie. Before each ad was shown, the license from the government to show the ad was first shown. Perhaps this is a legacy of the old 'license raj' in India. Another interesting event was the playing of the Indian National Anthem immediately before the movie. We all stood while the flag was shown on the screen.

As for the movie, we all liked it. The movie took place in Mumbai, so it was interesting to see the city shots. Also, the music was rather entertaining in the film. If there was a song playing during part of the film, the band would be on screen playing the song. So you would see a couple talking in the movie, and then a 3-member band playing in the background. It was like watching a movie and MTV at the same time.

I have a feeling that we will be seeing more Bollywood films making it to the USA big screen in the near future.
[Erik]


May 30, 2007
So far in our Indian travels, there have been a number of topics that have come up in many of our company visits, university forums, and individual entrepreneurial interviews. The great thing about this trip is that trends begin to emerge while visiting so many different groups of people in a number of different cities. We would like to highlight a few of these recurring topics.

The first word we keep hearing is microfinance. Microfinance has been a recent phenomenon based upon a theory developed by Dr. Muhammad Yunus who won the Nobel Peace Price in 2006. The idea has a strong basis in personal initiative and entrepreneurial action. Dr. Yunus believed that by providing miniscule loans to the world's most desperate poor, they would in turn use the money to purchase raw materials for a particular trade and thus begin the process of lifting themselves out of poverty. Today, more than 250 institutions have implemented the microfinance concept in nearly 100 countries and the payback rate on these loans is at an amazing rate of 98%.

The reason that we keep hearing about microfinance is that many people believe this is the way to have the economic growth in India reach to the furthest rural areas. The Indian government is well aware that it cannot maintain such a high level of economic growth in just a handful of urban centers. The poor in the rural areas will also need to play their part. Charity does not have a history of encouraging personal initiative. But being given an opportunity and being held accountable for the results has helped break the cycle of poverty in thousands of lives across the world.

Here is a description by Dr Yunus himself:

"I firmly believe that all human beings have an innate skill. I call it the survival skill. The fact that the poor are alive is clear proof of their ability. They do not need us to teach them how to survive; they already know how to do this. So rather than waste our time teaching them new skills, we try to make maximum use of their existing skills. Giving the poor access to credit allows them to immediately put into practice the skills they already know - to weave, husk rice paddy, raise cows, peddle a rickshaw. And the cash they earn is then a tool, a key that unlocks a host of other abilities and allows them to explore their own potential. Often borrowers teach each other new techniques that allow them to better use their survival skills. They teach far better than we ever could."

Another word we keep hearing is ethics. So far, both entrepreneurs that we have met in our in-depth interviews have stated how much a good reputation has been a key to their success. These were serial entrepreneurs stating that one must conduct business at the highest ethical standards at all times. This may seem to be an obvious point, but there seemed to be a strong level of personal ethics in the successful people we encountered.

A third word we have heard a number of times is diversification. A number of the entrepreneurs have stated that without the diversification of their business, they would not be around today. In the fast-changing Information Technology sector, this seems to be a key strategy in building a business in India.
[Erik]


May 29, 2007
The beautiful fabrics of India are as diverse as the people and the culture. Geography and climate are a determining factor in the type and quality of the fabrics that are used in different regions.

In the hilly regions of the north, you will find heavier fabrics made of wool. Items from this region that are popular in the U.S. are the Pashmina and Shatoosh shawls. In southern and coastal India, the fabrics are lighter in weight. Here you will find cotton and silk fabrics. Silk from India is some of the finest silk in the world.

India is the second largest producer of silk in the world, only second to China. India is the largest user of silk. Silk is made of proteins secreted in the fluid state by a caterpillar, popularly known as the silkworm. Man interferes in the life cycle at the cocoon stage to obtain the silk, which is used in the weaving of the fabric we all know.

The four types of silkworms are Mulberry, Tasar, Muga, and Eri. Mulberry is the most common one in India. This worm is domesticated and is reared indoors. The Indian Sarees are typically made from this type of silk. Silk in India is not just for clothes. It is used in upholstery and purses as well.

Sarees are the traditional dresses of the Indian women and are made from silk. A Saree is six yards of fabric that is draped around the body. Regional traditions determine the way women wear their Sarees. In some regions, the end piece crosses over the right shoulder, where in other regions the end piece crosses over the left shoulder.

Whether it is silk, cotton, or wool, the fabrics of India are fabulous. They are bright and vibrant or subdued and mellow. They can be intricately detailed or simple and elegant. Regardless of the style or material, the fabrics of India are fascinating.
[Jamila]


Central Silk Board
Our final company visit in Bangalore was to the Central Silk Board. We spent a little over 2 hours at the Silk Board. The first part was dedicated to learning about the silk industry and the second part about the silk extraction and production process.

We were surprised to hear about the status of the silk industry at the moment. China is currently the largest producer of silk and India is the second largest producer. Apparently, China has started selling silk in the market at cost, a process usually called dumping. This is eating into the Indian silk industry margin and government assistance is being requested. India has attempted to speak with members of the silk industry in China to show that by selling at cost, this will eventually hurt both countries, the labor-intensive silk producers, and the industry as a whole.

We believe these issues will continue to be a struggle between India & China in the near future. India is capitalist and China is still communist to a large degree. If China wants to sell their product at below market value, they will do so. In India, they can't. So, the question is, does India remain in these labor-intensive types of industries or do they only compete in hi-tech capital-intensive industries? We visited a number of hi-tech firms that are thriving. They were not talking about racing China to the bottom. They were talking about racing the USA to the top.

One author recently labeled the India & China economic rise and phenomenon 'Chindia.' It will be incredible to watch how these two countries compete against one another in the very near future.
[Erik]


May 28, 2007
Today, we conducted our second in-depth interview. This one was with Sudhir Sethi. Mr. Sethi is an incredibly accomplished man. He is currently the Vice Chairman and Managing Director of IDG Ventures India, a Venture Capital firm with a $150 Million fund to be invested in early-stage technology companies in India. IDG Ventures is a global company with a track record of investing in such companies as Netscape and Baidu.

Mr. Sethi has 26 years of experience in the technology industry and 10 years in Venture Capital (VC). In the past, he worked for the Walden International Fund, a VC firm that invested $33 Million in 4 companies over 4 years. He was also a Senior Executive at Wipro, a leading IT firm in Bangalore, India, for 12 years. In addition, Mr. Sethi was President of Infotech Enterprises for 4 years and took the company from $20 Million to $120 Million. Mr. Sethi is a serial entrepreneur creating 2 or 3 companies each year.

IDG Ventures India plays a direct role in identifying particular market niches. They will then either find and invest in companies already meeting the need or create a company from scratch. Mr. Sethi says that a Venture Capital firm must be humble and only invest in companies in which it can add value. IDG looks for particular qualities in the entrepreneurs that lead the early-stage companies. These qualities are integrity, flexibility, ability to learn, a hunger for the business, and a global mindset. What was interesting was that this was the second time we heard about the importance of integrity and how past actions affect future business ventures in India.

This was a very intriguing interview on many fronts. First of all, Bangalore (see photo on right) is at the center of the new economy and technology firms from around the world are taking advantage of this cluster of brilliant minds. IDG is in the center of this cluster and are in the midst of the exciting technologies being developed. Second, Mr. Sethi has a wealth of experience. We were able to speak with the partners of this VC firm and hear firsthand about entrepreneurial funding issues in Bangalore. And third,

We learned a great deal about the financing options available to Indian entrepreneurs. Usually, the first seed money for an entrepreneurial venture comes from friends and family. With rising wages and large amounts of wealth in the IT sector, many people are eager to invest their discretionary income in new ventures. The second round of money usually comes from a VC firm or from the government. We were surprised to learn that starting in the 1990's, the Indian government began provide VC funds in the amount of $100,000 to $1 Million. During the '90's, India did not have an established group of angel investors who could provide funds like this. The third round of money would usually come from a VC firm in the amount of $1 Million +. After that, funding would occur in the form of a IPO.

We also learned about the stages that Venture Capital has gone through in the recent past. The first wave was in the early '90's when the government began the VC fund mentioned above. The second wave was from 1992 - 2000 and consisted of Indian VC firms investing in the Internet bubble. The third wave consisted of both USA and Indian funds investing in new technologies from 2001 - 2005. From 2005 on, a new wave a Venture Capitalists have arrived from all over the world. Now, India has US$800 Million in VC funds invested each quarter.

Perhaps the most exciting take away from this interview was knowing that the people we talked to were playing a vital role in the recent growth of Bangalore. Just 5 years ago, very few people had ever heard of Bangalore, India. Now it is known as one of the innovation capitals of the world. This is such an exciting time to be in India and to witness the energy of those involved in this technological revolution.
[Erik]


Infosys
Our last meeting for today was with Infosys, the BPO giant of India. Infosys is one of the three biggest companies in India with Tata and Reliance being the other two. Infosys is similar to two of our previous meetings at Firstsource and Allsec in the type of business they provide. Infosys is a three billion dollar company that does business with 200 of the Fortune 500 companies. They currently have over 70,000 employees who are responsible for 450 clients.

The array of business operations that Infosys provides is truly astounding. They provide assistance with finance, life sciences, retail distribution and engineering so that companies can concentrate on their core competencies.

During the presentation by Infosys, there were some items with which we disagreed. They stated that American companies were not all that concerned with cost savings when outsourcing to India, but rather it was the quality of work that attracted companies from around the world. While it is true that Infosys attracts some of the best talent in the world to work on their projects, it is highly unlikely that many US companies would have outsourced their operations halfway around the world if there had not been cost savings involved.

A second item of contention was a chart that showed the infrastructure of India being ‘Good.’ The chart was made by the Forrester consulting group, but we all had issues with the infrastructure of India being described as good. Dilapidated roads and daily power outages don’t bring ‘good’ to mind. What was worse was that China’s infrastructure was rated lower than India’s, and Canada was stated as having the same ‘good’ infrastructure as India. I’m sorry, but Toronto looks a bit different than Delhi.

But overall, our biggest issue with the Infosys meeting was that we didn’t learn anything about the company. They didn’t tell us what type of training all of their employees go through. We didn’t learn about the exciting innovations that have been made at Infosys. The story of Infosys was never told. We are pretty sure that we could have made a better presentation about Infosys than they themselves made. The whole meeting was to brag about Infosys and tell how many awards they had won, while using data with which we disagreed.

When speaking of ‘good’ infrastructure, maybe they were referring to the Infosys campus. If so, they were dead on. I didn’t bring my bathing suite, which would have been fun to use in their Olympic size pool. The pond looked very tranquil lying on the outer rim of the complex. The tennis court was nice but I would have chosen to play volleyball if time had allowed. In our stretch limousine golf cart I believe we counted four different food courts throughout the campus. They had one building that was similar to the pyramid-inspired Luxor in Vegas. One last feature that I would like to mention is the mini golf course. Yes they had a chipping green where you could actually break out your irons and play golf. Unbelievable! This was not Disney World; this was Infosys.
[Joey]


Indian Institute of Management (IIM)
Professor Kalyani Gandhi was our main speaker today. She shared with us how the incubators at IIM were managed. The incubators are used to develop new businesses by providing them with support and advice. The business owners are allowed to remain in incubation for 18 months at a cost of about $250 a month. All of the companies that have gone through incubation at IIM are still operational.

She also discussed the differences between opportunity-based entrepreneurship and need-based entrepreneurship. Businesses that come from opportunity contain growth structures that increase the country’s GDP. Necessity based entrepreneurship doesn’t have any significant impact on the growth of a country. She went on to explain that this is the reason why India’s GEM indicator does not match the individual components. The components of the metric suggest that India should have a much lower overall score. However, the need-based entrepreneurship is driving the number higher.

Another pattern of commerce that she discussed was the thriving software industry. The reason why IT services and software development is flourishing in India is because you don’t need capital, such as land, buildings, and machinery. The intellectual property and the sheer number of graduates are helping to attract companies.

On a different note, there is no silver bullet to the challenges that face India. While their industries are growing at rapid rates, their infrastructure is slowly creeping along. This is not overlooked or ignored by those involved with the changes. But those involved have to work through the rules and constraints that are historically in place. I believe that India is living through a revolution that we will be studying for many years to come. It is phenomenal to be able see them working through the challenges and opportunities.
[Jamila]


May 27, 2007
Motor sports remains in its infancy throughout India. It is growing, but there remain many obstacles to overcome to make racing an economically viable industry. In the United States racing has been treated as a second-class citizen, second to the likes of Pro and collegiate football, basketball and baseball. Other countries of the world fair better, only yielding to soccer and in India’s case, Cricket. Media coverage, or lack thereof is one of the primary barriers of racing, both in India and in the United States. Factors such as low wage rates and weak infrastructure will continue to be problems to overcome. Here are a couple thoughts on these issues.

Import tariffs, taxes, lack of emission standards, and the infinite layers of bureaucracy compound to create an economic barrier that resists the influence of world-class levels of technology in all genres of motor sport. With regard to the motorcycle industry, progress has been made to allow the importation of motorcycles above 500cc. Unfortunately due to the 60% import duty and 30% tax of motorcycles greater than 500cc, an average SV650 Suzuki sport bike which retails USD $6,250 would cost approximately $11,875 or Rs 476,187. This type of government policy inhibits FDI and is discouraging. If the population cannot be offered products that will open their eyes to superior levels of performance and technology, regardless of whether these products can be afforded or not, then they will never become interested or passionate about the product or its corresponding sport. This concept applies equally to all automotive racing.

Looking at racing from the opposite end of the spectrum one will see another problem which presently I see no solution. There remain frustrations at the grassroots level due to lack of media coverage, which hampers drivers and teams’ ability to receive corporate support. Privateers struggle to afford to race and the organization is only able to give very small contingencies or prizes. The events that do get coverage have media attention centered on corporate sponsored vehicles, which makes sense in economic terms but in the end it is preventing greater promotion of the sport because some of the most exciting competition is among privateers. It is necessary to show exciting racing in order to create a public interest which will further increase corporate interest and the end will be the rise of motor sports into the greater public eye with infinite corporate sponsorship. In the end money controls all mainstream racing and in order for the corporate money to come participants must be willing to forfeit the “racing for fun, lets help each other and remain competitive” nature that lures enthusiasts to the sport in the first place.

Recently progress has been made. Hermann Tilke, world-renowned racetrack designer announced that plans are currently in the works to bring Formula 1 to India, specifically Delhi by 2010. Also, due to the lift of the ban on higher engine vehicles companies are finally beginning to bring new technology to the market. The future of motor sports in India is quite bright.
[Austin]


May 25, 2007
One of the most exciting deliverables that we are responsible for on our trip is to extensively interview entrepreneurs in India. As group 2, we had our first interview last night with a gentleman named Abhaya Kumar. This has been the highlight of our trip. We learned an incredible amount from this interview and were treated with such overwhelming hospitality that we are in still in awe. Mr. Kumar's son, Mayur Abhaya, also joined us for the interview.

Abhaya Kumar is a serial entrepreneur who carries seven different business cards in his wallet. He is currently the Vice Chairman and CEO of Asia Cryo Cell Private Ltd., which is a stem cell banking company. At the time of a child's birth, stem cells from the umbilical cord are preserved cryogenically for potential medical use in the future. This is India's first private cord blood banking company.

Additionally, Mr. Kumar is the Joint Managing Director of Shasun Chemicals and Drugs Ltd. Shasun is the largest producer of Ibuprofen in the world (35% of world demand) and the second largest manufacturer of Ranitidine. Mr. Kumar has also diversified into entertainment. He is a director for Imageworks India. His daughter started an animation studio called FrameFlow in the late 90's. This studio began securing high-end projects for Hollywood. Mr. Kumar’s company in Chennai, India completed most of the animation for the Adam Sandler movie Click. If you have seen Spiderman 3, you have also witnessed the work of this animation studio. The level of quality was so high that Sony's Imageworks purchased a majority ownership of Mr. Kumar's company, which is now Imageworks India. He has also recently started a women's college in Chennai and has a number of other social entrepreneurial ventures. We were truly in the presence of greatness.

Mr. Kumar started his first venture in 1975 with $12,000 in seed money from his father. He has turned this $12,000 into a company now valued at more than $100,000,000. His philosophy is three-fold. First, surround yourself with the best people. Second, ascend to the highest levels of quality. And third, never sacrifice your ethics. As a serial entrepreneur, reputation follows you wherever you go. At the end of the interview, we asked for his top piece of advice for students in our situation. He said to never be 100% certain of anything. Once you are 100% certain, you shut your mind off to new possibilities. The greatest mistakes that he made were when he thought he was 100% certain about something.

We spent a large portion of the interview learning about Mr. Kumar's entrepreneurial endeavors. We also learned a lot from his son Mayur who is now working for Shasun. Mayur is our age and it was interesting to hear about entrepreneurship from the son of a successful entrepreneur. After the interview, Mr. Kumar invited us to his beautiful house and then out for dinner.

Please click here to see a video highlighting our interview.
[Erik]


Fun Stuff
We had the extreme pleasure of conducting an interview with Mr. Abhaya Kumar and his son Muyar Abhaya. (Please note that a large portion of Indian population have a different naming convention for their last names than we have in the states. They take on their father’s first name as their last name) While having dinner with Muyar Abhaya we were discussing languages. He mentioned that there were 300 million English-speaking people in India. (about the same as the population of the U.S.) He went on to say that in a few years that India will have more English speakers than any other country. So he joked that they will start calling the language Inglish and that the common pronunciation of English will be with an Indian accent. <The visit with Mr. Kumar was phenomenal. Read above to find out more about the interview.>

Globalization at it finest (things that make you say hmmmmmm):
5. Coca Cola and Pepsi can be found in every nook and cranny
4. Purchases made in India as souvenirs were produced in Vietnam
3. Instrumental versions of soul R&B playing in the elevator in Chennai
2. Reggae music playing in the hotel restaurant in Chennai
1. Rap music playing in the local Pizza Hut in Chennai

My favorite Jim quote of the trip (so far):
“You can’t want to be an entrepreneur. You have to want to be a solution to a problem.”
[Jamila]


Indian Institute of Technology (IIT)
This trip just keeps getting better. Speaker after speaker continues to share more and more information about the changes that are taking place in India. We learned so much. Instead of going on and on like I normally do, I am just going to give you some points to ponder.

Dr. Ashok Jhunjhunwala, of the Indian Institute of Technology (IIT) Madras, shared with us his philosophy on the type of environment where innovation strives. Innovation will strive in a situation in which the following exists:

1. a faculty member who encompasses wide knowledge
2. an experienced industry person who knows how to develop/design a product
3. a young student who does not know that it can not be done

(Okay, Professor Thomas H. Lewis - -I get it now! This is what we created the summer of 1993)

Dr. Jhunjhunwala also mentioned that India is changing because they are now beginning to look within. Because it is a different environment from the West, they must do things differently to succeed. In the past they have sought inspiration from global sources, but it is now when they are beginning to pull from the strengths of their rich cultural traditions.

He also discussed if education and innovation go hand and hand. He stated that education can change lives. There may not be a direct correlation between education and entrepreneurship, but it makes a difference in livelihood.

Another member of the IIT staff was talking about the major opportunity that still exists. Many people are focusing on the 300 million people comprising the middle class and the saturated urban areas, but there is also rural India that has so far not been penetrated. This remaining market of 700 million is twice the size of the United States. Again, I state – India has an untapped market twice the size of the population of the United States.

Please click here to see video highlights of Dr. Jhunjhunwala.
[Jamila]


May 24, 2007
Our final meeting for the day was a visit to Firstsource, a Business Process Outsourcing (BPO) company. Firstsource provides business process management services to Fortune 500 companies in Banking & Financial Services, Telecom & Media, and Healthcare. They basically partner with clients to create an extension of their organization so that the companies can concentrate on what they do best. This was an absolutely fascinating company visit and one in which we are all still trying to wrap our minds around.

Do you know anyone who is currently reading a book in an electronic format? It is very likely that the book was converted to electronic format at Firstsource. They digitize over 1,000 books per week! Or what about the advertisement that you sent to your local newspaper? You provided the information to the newspaper, and it turns out they sent that information to India and a talented graphic artist has just completed a colorful advertisement that will be sent back to the newspaper in time for print. When was your last doctor's visit? It's probable that a Firstsource employee is checking your paperwork and making sure you are reimbursed the correct amount. Firstsource processes over 150,000 documents a day!

As we walked around the facility meeting the employees doing work for mostly American & European based multinationals, we were struck by the incredibly high quality standards. All managers are required to have Six Sigma training to the green belt level, and many of these managers have black belt status, which is the highest level. Six Sigma is a statistically based system that improves processes by eliminating defects. The mastery of Six Sigma concepts clearly shows in the 99%+ accuracy rates for data entry. And the company is not just in India. They have established delivery bases in more than 20 countries including the USA, U.K., and Argentina.

There were three other very impressive aspects of the company. First, they have an idea generation system for the employees to use. At any time, the more than 14,000 employees of Firstsource can submit an idea on how the company can improve. More than 1,000 of these ideas have been put into place. Additionally, Firstsource has been able to maintain a very low attrition rate amongst its employees. Less than 10% of employees leave the company in any given year in an industry with 40-50% attrition rates. In addition, they have set up a program called Footprint in which high quality former employees who have left the company are contacted every so often with information on how the company is continuing to grow and the benefits that are offered to its employees. The hope is that the employees return.

The major take-away from this visit was becoming aware of the extent to which business has become globalized. To walk around this facility and realize what the Internet has made possible is just mind boggling. It creates exciting jobs for these employees in India and frees the companies using this service to concentrate on what they do best.
[Erik]


No means No, Yes? No, No means Yes
As Group 2 entered the hotel lobby we decided to sit at the café and discuss our trip over lunch.  We had no idea what we were in for when we received our menus.  As the server approached us I asked everyone what they were getting to drink, Erik replied “Kingfisher,” Jamilia and Austin both responded “Sprite”.  I was ordering the usual, a Coca-Cola Classic.  The server approached me and I ordered my Coca-Cola Classic.  To my dismay he shook his head no and said “Coke”.  So I thought since he shook his head no and said “Coke”, they were out.  So I ordered a Sprite and again he shook his head no and said “Sprite”.  What on earth is going on here I thought to myself.  “Well I suppose I’ll have the last beverage on the menu, “Fanta” I replied.  As I should have predicted, the server shook his head and said, “No”.  Very perplexed, I thought it was India’s April Fool’s Day.  This was no joke to Group 2, we were tired, very thirsty and we wanted our drinks.  Erik then proceeded to order, it could have been my southern accent that was the issue.  The Minnesota accent didn’t do the trick either.  Five minutes of complete disaster was finally solved when another classmate yelled across the café and informed us that they have Coke and every other item on the menu.  We pointed to the classmates Coke bottle and said, “We want a refill!”

Cultures can be quite strange and difficult.  As Americans we have this perception that everything we do and say, is the correct way of doing it.  In America, that may be true, in other countries you have to be aware of different cultures and attitudes, just ask Mr. Gere.  One other aspect that is interesting is that cultures vary from region to region, as in the United States.  In Delhi (northern region) we did not face this issue when speaking with individuals but were introduced to this behavior when we first arrived at our hotel in Chennai.

Honestly, adapting to the yes,no-no, yes (whatever I’m confusing myself) is difficult.  I ask all of you to try it right now.  Say yes and nod your head no.  It’s not so easy is it?
[Joey]


Allsec
We visited our first call center where we were able to see who exactly answers our service calls that we make from the USA.  We visited Allsec where Mr. P. Viswanathan, the executive director, gave us information on the background of Allsec and where Business Process Outsourcing (BPO) was heading.  The basic types of BPO are customer and technical support, IT help, accounting, marketing research, and telemarketing support.  He also mentioned a few ways in which the U.S. is benefiting from this business process.  U.S. customers are now able to have 24 hour customer support.  While Americans are screaming at their computers or other devices at three o’clock in the afternoon, telephones in India are ringing off the hook at midnight.  He also mentioned that although IT jobs are moving from the USA to India, this allows USA companies to focus on their core competencies. 

He explained the training process and what happens after employees are trained.  Employees must master their English language skills and maintain a neutral accent.  They must also thoroughly understand the product that they support and must at all times understand cultural nuances.  This brings up a very interesting point.  As Americans, nothing will infuriate us more than an electronic device that is not working properly.  Of course, the only time when our computer malfunctions is when it is just after dinner and we have a deadline by 9:00 a.m. the next morning. Employees in India understand the frustration on the other side and try to walk the customer through the problem.

Revenues in India's IT & BPO sector totaled $47.5 Billion in 2006. This is up exponentially from $4.8 Billion in 1998.  The U.S. accounts for 67% of this BPO business.   Allsec has a highly skilled workforce. In addition, they have an intensive training program which provides voice accent training, listening skills, teamwork collaboration, and cross cultural orientation. These may seem very mundane to some of us, but with the increasing amounts of globalization, these skills are highly desired by individuals in India.

Allsec does face bad attrition rates amongst their employees.  A few factors are to blame for this.  One problem is the increasing knowledge employees gain in their day to day activity during work.  They gain knowledge in the IT industry, the financial industry and marketing industry.  With the training they obtain through such BPOs and the vast knowledge they learn from the business sector, other companies find this very appealing.  These companies don’t have to train the new employees because they already have sufficient training and the skills they acquired from Allsec. So Allsec and other call centers experience a “braindrain,” which is detrimental because training new employees is one of Allsec’s most expensive costs.

BPO and call centers are rapidly growing and Americans will continue to outsource their business operations to focus on their core competencies. 
[Joey]


Brij Datalink
No matter where you are in the world, some problems appear to be universal. From country to country, human resource issues are the same. In some places it may be there are not enough qualified people while in other countries there may be too many qualified people and not enough commerce to employ all that want jobs. Ultimately, the mix of the country, the economy, the government, and the size of the company determine all this. Prestige takes priority over tenure.

Brij Datalink is a medium sized software services company with clients in the U.S., Middle East and Singapore. They currently have 55 employees. Because the software/IT industry is growing in leaps and bounds in India, there is a huge demand for educated workers. The average turnover rate has been around 39% for the software industry. This is a huge challenge for small companies. The learning curve may be short, but it is always cheaper to keep an employee than it is to hire and train a new employee. Brij Datalink does not have any employees on staff that has been with the company since its inception. They did have one employee that had been on staff for seven years until two months ago. The average time that an employee stays with the company is two years. Because of this, the owners are heavily involved in project management.

In addition, the fight to obtain the best engineers is a difficult one. The large corporations typically pick the cream of the crop. The prestige, pay, and security of a large corporation are much more of a draw to new graduates.

Brij Datalink is also challenged with finding employees with strong work ethics, strong soft skills, and the desire to build their career within the organization.

Individuals used to evaluate their career by how long they had been with one company. Now they are more likely to tell you how many companies they have been with in the last year.  
[Jamila]


May 23, 2007
Today we arrivied at the Taj Mahal. The Taj is not only one of the renowned historical complexes in the world, but it is one of the most beautiful pieces of art that anyone will witness. Understanding the meticulous stone work and luscious green gardens, a visitor will bestow a strong apprecitation for the tomb. Not a single brush stroke lay on the walls of the Taj. What you will find is beautiful floral bas relief motifs and calligraphy made from Jade. A single floural design, the size of a notepad could contain between 30 and 70 different precious gemstones for a single design.

As we stood outside, we could see the sun reflecting off the majestic structure and the glistening gemstones struck our eyes. Besides being stunned by the intricate art work and the defined symmetric architecture, the history behind the Taj is worth mentioning. Shah Jahan, the emperor of the Mughal Dynasty built the colossal structure for his favorite wife, who passed away during the childbirth of her 14th child. Legend has it that Mumtaz Mahal, the wife of Jahan leaned over on her death bed and asked for her husband to do three things for her; take care of their children, marry again and construct a monumental tomb for her. He did not marry and separated with is sons, the latter of the three was greatly recognized.

Over 20,000 men constructed the monument, which took nearly 20 years to complete. The Taj Mahal is the center piece of India. It resembles their appreciation and compassion for love, their obsession with meticulous detail and their intricate knowledge of architecture.
[Joey]


Fort Agra
Most people have seen pictures of the Taj Mahal in all of its glory, in pictures or in movies. The Taj Mahal definitely deserves the accolades it receives because every intricate detail is stunning. A less recognized, but just as amazing monument is Fort Agra.

Due to the extreme heat and early start, many members of the team didn’t make it to see Fort Agra. But, there were nine of us that braved the heat and continued on with the journey. (Yes, Mom and Dad, your darling cheerleader was one of the crazy eight + 1.)

Our tour guide for the day was named Guru. He led us through both the Taj Mahal and Fort Agra. Because we were all so amazed and in awe of what we were seeing, the tour guide was tasked with reeling us back in every five minutes. By the end of the trip, he had all of our names memorized. He would sing each of our names in an attempt to get our attention. First it was Joi. Then it was Laurie. By the end of the trip, it was Chris and JAMEEELA! Guru calling our names kind of felt like your mom calling you in the house from a long day of playing kick ball.

Fort Agra was a castle that acted as both a military fort and the royal residence. It was built and lived in by the Mughal emperor, Akbar. Fort Agra was built in the 16th century and housed the emperor, his wives, and his entire harem. An interesting fact that we were all surprised to hear was that not all the harem members were women. The 5000 harem members were a mix of men and women. There was an upper level harem and a lower level harem. The harem could be considered to be the staff, which managed or performed services on some portion of the Fort.

Fort Agra was huge! The tour only allows you to visit 1/3 of the actual grounds and we were in there for well over 1.5 hours. Each wife had her own chamber. The chambers were more like wings because each had several different rooms. The fort was way ahead of its time in engineering because it was air conditioned through an underground and wall system. It was protected by 2 moats. It had the typical water moat as well as a dry moat. The dry moat was a mini forest that had lions and tigers.

The fort was decorated with a mixture of architectural styles. There were designs of both Hindu and Islamic styles. Many of the archways and wall decorations were images of the lotus flower and birds, which is typical of the Hindu style. There were also basic geometric shapes and forms, which is typical of the Islamic design. All of it was absolutely outstanding. If ever in India, be sure to stop by both the Taj Mahal AND Fort Agra!
[Jamila]


May 22, 2007
The Poverty - One thing that has struck all of us on this trip is the level of poverty that we are witnessing on the streets. It is in stark contrast to the beautiful buildings and relatively wealthy people we are visiting. There are streets just lined with individuals sleeping on small blankets. Makeshift housing is scrapped together with bamboo, cloth, and plastic. Our professor asked us if we still thought poverty existed in the United States. His point was that our very definition of poverty has been radically altered as a result of what we have seen. The level of poverty is palpable, and I fear we have yet to see the worst.

So larger questions loom. How will India create opportunity for the 75-80% of people living on less than $2 a day? We are not seeing ‘We’re Hiring’ signs at businesses here where 825 or so million people living in poverty will be accomodated. And is the growth of the hi-tech sector really a viable long-term answer for the economy as a whole?

Hi-tech means capital-intensive as opposed to labor-intensive. Labor-intensive jobs such as manufacturing will provide more jobs in the short term. It seems that China may be doing a better job of creating jobs for larger numbers of people. China has 100 million people working in the formal manufacturing sector. India has just 7 million. What is better at this stage in the economy – to focus on capital-intensive industries that rely on capital instead of labor? Or is it better to emphasize labor-intensive jobs in the short run in order to employ more of the population?

And what is the role of entrepreneurship in lifting people out of poverty? This is something we hope to explore and write more about our findings.
[Erik]


Power in India
The media touts India as a place conducive to start-up businesses. The main barrier that is apparent to any entrepreneur looking to set up a venture in India is the severe unreliability of infrastructure. Having a source of reliable power is the most apparent barrier. Laws that have allowed privatization of the power market have been largely ignored by State Electrical Boards (SEB). The few private companies that have ventured into this market have faced many difficulties and even fewer have stayed. The root of this problem lies in the belief of many that power should be available to all at a very low price. This has been due to subsidies that have been given to many over the years, private and public. Politicians support this belief and lobby against privatization. They even condone electricity theft and prevent police action against violators. Load shedding of the power grid under high demand creates frequent outages throughout Delhi. Every place we visited yesterday (21, May, 2007) suffered multiple outages. For any business to survive in India, a generator is absolutely essential.
[Austin]


May 21 , 2007
Today we visited three organizations that supported entrepreneurship in India. The first organization was the National Center for Entrepreneurship and Small Business Development. (NEISBUD) This organization’s purpose is to help train and provide resources to other organizations that support and promote entrepreneurship. One of the institute’s leaders, Rita Sengupta, discussed India Women and Entrepreneurship.

Based on the information she shared, we know now that women’s participation in entrepreneurial activity is only about 12% in India. NEISBUD recognizes that India is still a male dominated society, but they still have a goal to help increase activity level for women to at least 16%. The entrepreneurial level as a whole for India is 17.9%.

Listed below are ways in which women are being assisted to overcome the typical obstacles faced (financial and social risk) when moving out of the family or husband’s house:

1. The creation of Shared Help Groups (SHG) – these organizations, typically in rural areas, are formed by many members of the community. They are created to share the responsibility of taking out a loan. The lending institutions are willing to support these because it reduces their risk as members support each other and are equally responsible for repayment of the loans.

2. There are programs that only require women to have 10% of the seed money needed for starting a new venture.

3. A percentage of government loans are guaranteed to go to women.

4. Special women’s programs – pulling together organizations to help support women in their efforts.

The other two institutions that were visited were Amity University and Global Institute of Management. Both of these universities have degree programs related to entrepreneurship.

Please click here to see video highlights of this visit.
[Jamila]


Traffic
The traffic is amazingly crazy. It is exciting and scary all at the same time. The scooters, the cars, the bicycles, and the tuktuks all weave in and out in chaotic harmony. The sound is very similar to that of New York City. The honking is part of the sound of the street. One of the team members yesterday said it was like people saying hello. If that is the case then everyone is very friendly. The drivers treat the lanes like one fluid lane because they are constantly weaving in and out. We have a driver and a direction finder. The driver sits on the right side and the assistant sits on the left. The assistant acts as “MapQuest”. His main job is to jump out about every two or three turns to get directions to the next destination due to a lack of street names. The team became a part of “Mapquest” by pointing out the buildings we were looking for as we passed them.

9:30 AM on the way to our first site visit at the National Entrepreneurship Institute for Small Business Development. We just got pulled over by the police. The bus driver and his assistant hopped off and talked to the officers and we were sent on our way. The different thing was that the officers were just standing on the street and waved us down. Nothing was wrong, they were just checking our paperwork. It probably doesn’t help that we have a big huge “Tourist” marking on the front of our bus. As if it wasn’t obvious enough, the scarlet letter now makes it even more clear that “The tourist are coming, the tourist are coming!” We are looking and watching them and they are looking and watching us.

India’s economy is growing, but its infrastructure doesn’t appear to be growing at the same pace. There are beautiful new buildings being built in many different areas but alongside them are rickety makeshift homes. Some are made of metal siding and others are made with mix match pieces of different materials. There are also mounds of trash scattered across the sides of the streets. We met with different leaders at academic institutions who all agree that improvements in the infrastructure will help ensue even greater growth in the entrepreneurial activity in India. One can see that efforts are being made. On the trek from the airport to the hotel, there were many overpass support pillars being erected for new highways. It is coming, but it is slow.
[Jamila]


May 20 , 2007
The anticipation is finally over. We are on our way. The flight was a long 12 hours and the excitement of the new land started as we were gearing up to exit the flight. On international flights you are required to fill out a customs form before you exit the airport. These forms were given to us about an hour before we were to prepare for landing. Because the forms require your passport number and visa number, everyone began to pull out their passports. To the group’s surprise, one of our team members had lost his passport. Who knew that you could lose your passport after you had successfully made it on the plane? It happens. Ask India Study Trip members Barron and Joseph V from airplane row 39. For one small moment, I thought we were going to have to put up police tape so we could do a thorough search of rows 38 – 40. Barron searched above, in, and below his sit for about 5 minutes. Then his fellow row members moved so that their seats could be checked for the lost passport. Everyone begin to try and think of ways in which we would get him a new passport. The yellow emergency card was the first step. Before we all got completely up in arms about Barron’s passport, Lauren decided that she was going to check his bag for him since he knew that is was definitely not there. Score! The lost passport had been found in the side of Barron’s bag. Soon after Barron found his, Joseph V. lost his. Quickly his passport was found on the floor by his foot. It was decided that Barron officially earned the nickname of Tom Hanks. But we were all glad that the he wasn’t going to be “Terminal”.
[Jamila]


May 17 , 2007
What if you didn't have to wait in long lines at the checkout counter of your favorite retail store? What if each product contained a label that was automatically scanned as you walked out of the door and that even a store gift card could be read by this scanner to immediately charge for the purchased goods?

Soon Wal-Mart will begin using this technology in the form of Radio Frequency Identification (RFID). This technology will allow customers to purchase items from the store and never wait in a checkout lane. How so? RFID is revolutionizing the way we shop and handle transactions. It will replace the current standard of barcodes (UPC). It uses the same waves that are found in radios, televisions, cellular devices and radars. It also allows companies to easily handle logistics for its company. The United States Army is using this device to save the lives of soldiers. By using this technology they can track soldiers at war and bring them back safely to base.

Today, Dr. Ani Agnihotri spoke with to our class about entrepreneurship and the economy of India. He received his MBA at Augusta State University after transferring from Kansas State University so he could play ping-pong. He has also been on the Board of Education and been a key member of the Ciber Center for Business research at Georgia Tech. In addition, Dr. Agnihotri has been a part of numerous startup companies.

He started his own RFID company, which later merged with a German company. He has also been a part of many non-profit companies. He founded a U.S. India Business Co. which helps individuals in India to start a business and also assists Indian-based companies in their ventures into the U.S.

Dr. Ani Agnihotri explained that India has an entrepreneurial advantage over the rest of the world. Individuals from India are eager to work hard and to make a difference in their lives. They have the ability to venture outside their country and go global. India’s economy is growing at a rate of 7 ½ - 8 ½ % which supports his idea of entrepreneurs going outside their country. This number is increasing every year.

Dr. Ani Agnihotri's speech was beneficial for our class and for our understanding of entrepreneurship in India.
[Joey]


May 15 , 2007
Per our doctors and friends advice, the majority of participants on this trip have begun taking an anti-malaria medication called Mefloquine. This medication is in oral pill form and is taken once a week, beginning one week before departure, continuing through the trip, and for four weeks upon returning. Some side effects include:

*upset stomach
*vomiting
*diarrhea
*stomach pain
*loss of appetite
*muscle pain
*dizziness
*loss of balance
*ringing in ears
*headache
*difficulty falling or staying asleep
*unusual dreams
*tingling in your fingers or toes
*difficulty walking

AND

*seizures
*shaking of arms or legs that you can't control
*nervousness or extreme worry
*depression
*changes in mood
*panic attack
*forgetfulness
*confusion
*hallucinations (seeing things or hearing voices that do not exist)
*violent behavior
*losing touch with reality
*feeling that others want to harm you
*thoughts of hurting yourself or killing yourself
*rash

So far the only symptoms experienced by our group members have been very unusual, violent dreams and difficulty falling or staying asleep. Lets just hope that these symptoms are less common than stated or else we are in for quite a trip. It makes me question which is worse, all of these symptoms or malaria itself.

The chance to see another part of the world and return with lifelong memories and experiences, $4,250; being able to videotape all our group members with these symptoms, PRICELESS.
[Austin]


May 11 , 2007
In preparing for the trip, we have come across some very interesting information in terms of the economy and employment:

* Only 35 Million of the 1.1 Billion people in India are employed in the formal sector.
* Of these 35 Million, 21 Million are employed by the government.
* This leaves just 14 Million people employed by companies in the formal sector.
* Of these 14 Million people, 7 Million work in the formal manufacturing sector. In China, this number is 100 Million.
* Of these 14 Million people, only 1 Million (less than 1/4th of 1%) are employed in IT, software, back-office processing, and call centers.
[Erik]


April 27, 2007
Have You had your cup of Starbucks today? Do you know that about 70% of the population of India lives off less than $2 a day. Yes, that is less than the price of my favorite cup of coffee from Starbucks, a tall Carmel Macchiato with whip cream.

Even as India is pushing its way to the top of the countries that are categorized as emerging markets, it is still an economy that has great differences amongst the financial wealth of its people.

During the 1 day workshop, India and the U.S.: Exploring the New Horizons Together, Dr. Rajesh Chakrabarti gave a brief set of facts that outlined the the dual economy that exist in India. While, we continue to hear of the growing middle class of India and how skilled laborers are in great need, we must not overlook the other side. Listed below are a few of the facts that Dr. Chakrabarti shared:

* 75% - 85% of the people live on or under $2 a day. The poverty numbers are continuing to decrease.
* The formal sector of India accounts for about 7% of the population. The formal sector is those organizations that are registered. That means that 93% of the population works outside the formal sector.
* There is a labor shortage of call center type workers. There is a battle to keep these skilled workers. One company will spend several months training an employee, and the another company will take this employee after they have been trained. The other side of the coin is that 80% - 90% of the workforce is unemployed or underemployed.
* The differences between the groups get exasperated because of the media. Those that are in the middle class are often highlighted on TV for all people to see. This could give rise to the relative deprivation. Some may wait for the wealth to trickle down but others may show their discontent through violent acts

Let me highlight just a few of the positive items:

* India's GDP is growing at about 8% to 9% a year.
* India is the world's largest democracy
* India has and will continue to have a large amount of educated workers. (20% of their population speaks English. This equates to just about the population of the U.S.)
* India is able and willing to work with and development relationships with countries around the world.

There was a ton of other valuable information shared. I wish I could capture it all, but that could easily become a dissertation. Let me share one last thing that was very interesting. One of the last presentations was given by Vicki Flier Hudson. Her topic was culture and business. She shared information about some of the cultural differences between the U.S. and India related to communication styles and time systems. Two myths that are often believed by U.S. business people while working with Indian business people are 1. their Indian counterparts are indirect and evasive in their communication and 2. that they are often late and off schedule.

Mrs. Hudson shared an explanation of these myths. In the Indian culture their is a win-win attitude. If someone tells you that there is nothing wrong when in fact there could be huge problems with a project, this could be the fact that they are working the issues and not won't to give the perception that it can't be completed properly. She gave different methods of how to handle these situations differently. Also, Dr. L. Narsi Narasimhan pointed out that each one of these situations and myths can be countered with examples that are completely opposite, so each situation has to be evaluated on an individual basis.

She then gave an explanation that we in the U.S tend to work on a fixed time system that is concerned with when things happen and following a schedule. In Indian culture, they tend to be on a fluid or circular time schedule. This could mean that they could show up "late" to meetings because they were interrupted by other partners and were unable to meet at the designated time. In the Indian culture they value relationships and interruptions are not a distraction. This may change their schedule, but they allow for them because it ensures that everyone wins. Mrs.. Hudson suggested to always bring other items to work on so that you do not become upset if a meeting time is changed.

My lesson from this for the trip is:
1. Relax and be prepared to adjust our schedule as needed.
2. Build strong relationships and be open to different styles of communication.
[Jamila]


April 26, 2007
Today, Tusar, Jamila, and Erik attended an event on India titled: India & the U.S.: Exploring New Horizons Together – Emerging Market Opportunities.  It was an incredible event and we all learned a lot about India.  One of the distinguished speakers was Ambassador Raminder Singh Jassel who is the Deputy Chief of the Indian Embassy in Washington D.C.

Ambassador Jassel gave an interesting speech where he highlighted three specific reasons that India has been able to integrate seamlessly into the global economy.  His first reason related specifically to the Information Technology sector.  He said the reason that IT was so successful in India was because the Indian government had nothing to do with it.  It was a comical point that referred to the notorious bureaucracy that has been dubbed ‘the license and permit raj’ of India’s past.  If the bureaucracy could stay out of other sectors, integration would continue seamlessly.

A second reason why India has been able to seamlessly integrate into the global economy is due to their history.  There has always been a confluence of cultures in India, which was largely brought about by cross-border trade.  The Spice Route connected the famous Silk Route to India.  And there are many other historical examples of India being an early trading partner with many nearby countries.  Cross-border trade has been in India’s history for thousands of years; this is not a new phenomenon.

The third reason was what Ambassador Jassel referred to as an accident of history.  Specifically, he meant the colonization of India by the British, which brought the English language to India.  It is estimated that there are as many as or even more English speakers in India than there are in the United States!

These three points will be important to keep in mind as we study the entrepreneurial environment in India.
[Erik]