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Re: Puneet's response: misdirected: Re: Indiresan: a critique (fwd)



Puneet's suggestion for bringing high-tech to India:

  If provided with 
> financial backing and freedom from the red tapism such innovation can work.

That is the key thing again: economic reform. Venture capital exists in
the USA for high-tech high-risk ventures. Only private markets can provide
it. That again requires freeing all interest rates and completely
privatizing banks/ Non-bank financial institutions. No government bank can
judge the interest rate it is going to charge on a new and risky high-tech
venture. The other thing about red tapism is the key. We've discussed some
of this before. 

Second, I hope you did not refer to any "subsidies" when you talk of
financial incentives/ backing. That is the thing to be avoided like the
plague.

> BTW, to dispell a much misinformed notion: from my batch of IITK graduates
> after a survey we found about 50% are finally here, 10% got into IIMs etc,
> 10% in administrative services, ~30% in some technical job in India.
> And we had a batch of ~200. That doesnt account for the million in the US.

One IIT engineer is worth a lakh at least (lakhon mein ek!) That's why I
referred to millions of them in the USA! Well, you'll admit: to have only
30% of our best engineers doing engineering in India, is a sign of some
serious defect in the economy. 

But seriously, I am not bothered about the brain drain per se. If we focus
on setting up the right set of incentives then all these dosa-hungry folk
will come sniffing back to India for a real feel of India (the "bhang ka
rang" and Madhuri Dixits and Hema Malinis, depending on one's taste and
age!). 

The challenge is to set up those incentives. Once that is done, this
temporary exodus or "brain drain" will reverse and become the biggest boon
to India in its entire history.  In any case, we don't want all of them
back. We need them to run our own multinational companies abroad, as we
slowly take over the USA!

Sanjeev