Human capital is India's biggest advantage today, says David Hopper, US Consul General in Chennai.
Growing at 8 per cent, India is one of the fastest growing economies in the world. The US-India trade is pegged at $26 billion and is set to boom, he highlights.
As the economy grows, US companies have also substantially hiked investments in India. Companies like Microsoft, Dell, Intel, AMD, Cisco and BMW have lined up huge investment plans in India. He urged Indian entrepreneurs to boost Indo-US trade. He said that the consulate would open an office in Hyderabad to extend all support to Indian companies who would like to do business in the US and vice versa.
With the biotechnology industry slated to hit $5 billion by 2010, biotechnology and bio-informatics are also emerging as big opportunities, which must be tapped.
However, he said that bureaucratic hassles exist and customs and excise procedures are still confusing in India. There have also been instances where Indian companies have breached contracts with US companies, he points out.
Talking about IPR issues, David Hopper said Indian patent offices should gear up to face the growing challenges, be more equipped with human resources and data processing facility as well.
In terms of visas, he said, the demand for US visas at the Chennai Consulate is growing at 10%, this is higher than the GDP of the country! He assured that the Chennai consulate will soon expand to meet the growing demands of people wanting to go to the US.
David Hopper shares his India experience and talks about why he sees a huge opportunity in India.
On the India experience
I have been working as the Consul General at Chennai from 2005. So I have been able to see a lot of South India. But I came to India in 1977 as consul general in Mumbai. I'm not an India expert but I got the opportunity to see how India existed 25 years back and now. It has been a fantastic growth, particularly a place like Hyderabad, a small town that that now grown as a dynamic hub of education, technology, retaining its the culture and heritage. It is a very exciting and interesting place to be.
Business developments in India
India is very attractive now. Due to geo-political reasons after the Cold War, reforms and liberlisation process initiated by various Indian governments, the scope of business is booming and unlimited. Foreign investors are interested in the human capital, talent and lot of resources in India. There has been a record FDI in India. But had India grown at a faster pace in terms of infrastructure and facilities, FDI would have grown further. There are infrastructure problems in terms of power, good roads, airports, ports which needs to be addressed to bring in more investment.
Great opportunity in India
The knowledge of English in India is a good advantage for the US. The education system and talent available is huge. I hope the process of liberalisation continues and it will be easier to do business in India and foreign investors to come to India.
India's booming small towns
Growth in Hyderabad is a particular case. It is a showcase of emerging India. It is great to see the hi-tech city, the infrastructure has developed very well compared to many other cities in India. Foreign investors are keen and excited to come here. They see big companies like Microsoft, Infosys and educational institutes like the ISB, which is an advantage for Andhra Pradesh.
On product innovation in Indian companies
Indian companies are coming up with innovative products. Companies like Portal player are examples of this. They have done fantastic things in product development. There is a huge potential in India and companies like these attract more investors to India.
Will India emerge as a economic superpower?
India will emerge as a superpower, the fact that we are here in this magnificent school, which collaborates, with the best business schools in the US and the world is a good example. ISB is a fantastic institute. President Bush visited ISB and Hyderabad to get a feel of emerging India. The TiE-ISB Connect conference with so many VCs from abroad reflects the opportunities in India. India needs to go on developing on its key resource - human capital. If India continues to develop its key resources, it will flourish and this is something, my country and government would support.
Is growing terrorism a cause for concern for US companies coming to India?
Security is one of the important issues that form a part of the infrastructure or conditions that foreign investors including the ones from US look for in a country apart from other resources and human capital. But American companies are not hugely concerned about the security in India, though it is something companies keep a close watch security. But I think US companies realise that India and US are partners with other countries in the fight against terrorism. The Indian government at the central and state level is serious about combating terrorism. They also realise that terrorism is not targeting just the American, European or any multinational interests.
