Why Indian Prime Minister Modi’s Invitation to Tech Giants Makes Sense

Often, the idea of inviting foreign multinationals to develop internet infrastructure in India is met with skepticism, as some perceive it as a way to benefit Indian elites rather than foster growth. However, a deeper look at the benefits and the current state of the Indian internet infrastructure reveals that inviting giants like Facebook and Google can indeed be beneficial for the country.

Competition and Innovation

One of the key principles of capitalism is competition. The more companies vie for a slice of the Indian pie, the greater the chances of innovative solutions to existing problems. Foreign tech giants bring with them advanced technologies and a global perspective, which can catalyze improvements in the Indian internet sector. Tata and Wipro, known primarily for their service delivery, often fall short when it comes to engineering and innovation. Inviting international companies to the table can help bridge this gap.

Survival of the Fittest

It is often argued that Indian companies should already be working on solving their own problems. However, the reality is that many large Indian companies like TCS, Wipro, and Infosys are heavily focused on international markets where salary differences present a competitive advantage. They tend to allocate only a fraction of their resources to domestic issues due to the lower potential for large-scale impact and lower margins compared to international projects.

The Indian companies that have operated within the country for decades often lack the motivation to tackle complex domestic challenges. Foreign multinationals, on the other hand, are in it for the long haul. They have the financial resources, technical expertise, and a willingness to push the boundaries of what is possible. Their track record in tackling large-scale technological challenges, such as the IRCTC system, demonstrates their capability and commitment to making a significant impact on the national infrastructure.

Go-Getter Attitude

Foreign multinationals are not just here to make a profit; they are here to win and take the lead. They bring in the best talent from around the world and are willing to bend over backwards to make a success of their endeavors. Indian customers benefit from having the best talent working on their problems, which can lead to better quality solutions.

Moreover, the presence of foreign companies can foster a culture of innovation and competition among local players. This can result in joint ventures and collaborative efforts, where local companies can enhance their capabilities by leveraging the expertise of global giants. This can be mutually beneficial, as it allows domestic companies to access the latest technologies and best practices.

Encouragement of Startup Culture

Foreign companies are also more likely to champion and integrate technology from startups, both Indian and international. This can introduce cutting-edge solutions that might not be available through traditional methods. For instance, a US software company is incorporating technology from a Bangalore-based chip design company, Saankhya Labs, for Wi-FAR broadband last mile coverage. Such initiatives can ensure that remote and underserved areas in India have access to affordable and reliable internet.

Redtapism and Policy Changes

Inviting foreign companies to develop internet infrastructure in India can also bring about policy and regulatory changes. These companies often need a level of transparency and ease in the regulatory environment to operate efficiently. Given that they are willing to go the extra mile, there is a greater likelihood of policy makers making necessary changes to ease the process for these multinationals. This can create a more favorable environment for all companies, including domestic ones.

It is important to recognize that the Indian startups and domestic companies will not disappear due to foreign presence. Instead, they can become more competitive and innovative, driven by the competition and the access to global best practices.

Conclusion

In conclusion, the invitation by Indian Prime Minister Modi to foreign multinationals to develop internet infrastructure in India is a strategic move that can bring about significant benefits. From fostering innovation to encouraging a startup culture, the collaboration with global giants can have a transformative effect on the Indian internet landscape. It is a way to ensure that the country can catch up with the latest technological advancements and improve the lives of its citizens.