a chip that lies inside Iphone. What if we used all these people to build a product from India?India has been known for its 'services' ,but more the services grows in India, there will be some other economy that will grow exponentially. For instance, let us say a software company wins a project from a Insurance company. The Insurance company will not invest in the software if it does not expect a huge return out of its investment. So, at least theoretically, we do a 'service' for other economies to grow.
When does India become the India we dream of? From the little economics I know, I can see it happening only when India develops more 'products'. Tata Nano has been the only such product I am aware to have made the world look up. But that too for its cost-effectiveness or to put blatantly for being 'cheap'. Nevertheless, it could create news.
India is definitely capable of producing more products. There is no dearth for talent, we all know. But, a huge investment is often needed to conceptualize-and-develop a product. And if the product doesnt sell after all that? This is the risk Indian manufacturers or potential manufacturers cannot take. This is the reason why, I guess, most of the guys with money dont invest in Products. Not even software companies with such expertise doesnt venture into products.
So, we need money (i.e our economy to grow) to develop products. And we need to develop products for our economy to grow to that extent. A deadlock here, I guess. How do we get over this?!
Well... I'd say u got a portion of it right and a portion of it wrong! Indian investors are ready to take risks but in what field can they handle the risk is the bigger question. iPhone might be the craze but when you consider its price, not even s/w engg (as in high paid labourers) can afford to get it so easily and that means a greater portion of the population will still look at it with awe and wait for some Diwali bumper that gets them a free iPhone. Demand is the availability of people who are interested in and are capable of buying things.
ReplyDeleteSecond part to it is the Infrastructure. The way insurance operates in US/UK is completely different from the way it operates in India. That's a classic reason why Indian insurance companies will not and cannot afford to buy such huge products from our own software vendors.
Overall, I appreciate your concerns but there is a looooooooong way to go before India gets to that stage.
I buy your reasoning da ... But the average salary is getting better in India ... and not the mindset
ReplyDeleteSmiles,
Vinayak
Ha ha ha :) True!
ReplyDelete