India Beckons
Tata, Wipro and Infosys Are Boosting India's Competitiveness
Tata, Wipro and Infosys are some of India's leading firms, and are now drawing serious attention in the international business community.
India is on a roll. The nation of 1.1 billion is finally being taken seriously by the big players on the world economic stage, namely the United States and China. With a young population, a solid private sector and a stable democratic government, India is in the spotlight and it's predicted that in 2040 it will have the third largest economy. Granted, there are many problems to address, but economic growth in India has been so impressive since major reforms took hold in the early 1990s that it's unlikely that this South Asian tiger's roar will easily be silenced, or even lowered.
A report in Newsweek magazine in October, 2005 cited many grand statistics about one Indian conglomerate in particular. The Tata Group, India's largest firm in market capitalization, was expected to post revenues of U.S. $24 billion in that year. That number is staggering but this year profits are expected to go up even further. The auto industry is also doing very well. Revenues will exceed $10 billion this year. In 2008 General Motors plans to import $1 billion worth of auto components from India.
The software giants in the Indian arena are Wipro and Infosys Technologies. According to The Hindu Business Line, the April 2005 edition of the Global Outsourcing publication had ranked a total of 12 companies in terms of their "value as an outsourcing company." IBM was put in first place, Infosys and Wipro took fourth and fifth place respectively.
There are trouble spots too. India's infrastructure is in a shambles with poorly maintained roads and pressing environmental problems. The number of people living with the HIV virus is very worrisome, and the nation has some catching up to do in educating the people in poor, smaller villages. India has been a huge success in one area, however, and it's that they have maintained a democratic system of government since independence in 1947. This is a type of government that Americans can understand and feel comfortable with. It's loud, chaotic and takes several unexpected twists and turns. This is one advantage that India has over the rigid, secretive Communist regime in its larger Asian counterpart, China.
The political relationship between Beijing and New Delhi hasn't always been rosy. The two countries fought a brief war in 1962 and China was the victor, but things are different today. According to a 2005 report by Deutsche Bank Research, China is taking a greater interest in India's successful IT sector, and Indian businesses want to learn more about China's manufacturing strengths. Trade between these two Asian giants stood at a small but respectable U.S. $13 billion in 2004. A more encouraging sign is that both governments have agreed to work more steadily towards settling disputes over border areas.
India should be commended for its progress. If the Indian government can tackle the big health and education problems, and maintain friendly relations with the U.S. and China the nation will really take off.
