India’s finance minister Pranab Mukherjee presented the government’s budget yesterday in Parliament. Overall termed as a prudent budget which keeps the reforms agenda intact, the budget has, as is the UPA’s wont, refrained from bold moves, but left most target audiences happier.

This budget has for the first time acknowledged the role of the private sector, and underlined the role of government as an enabler rather than builder of the economy.

What does the budget have for the hi tech industry?

The IT industry has finally been told that the tax holiday for exports would go b y 2011. That’s fair, I suppose. On the other hand, government spending on IT, through e-governance projects, could provide huge opportunities for Indian IT companies, the majority of whom had, up until now, not tread on this territory.

Clean Tech, predictably, gets a big boost. A National Clean Energy Fund has been created, to invest in clean tech ventures and foster research in the area. A clean energy cess will be imposed on coal ( Rs 50 per tonne) to build this fund. Tax breaks for clean energy products like solar panels, wind turbines etc and excise exemption on inputs is another positive signal. 

In the context of increased government spending on automation, Nandan Nilekani will head a tech advisory group on behalf of the government to ensure creation of reliable and tamper-proof IT projects. Also, The UID project has received an allocation of Rs 1900 crores. Way to go!

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Borrowing Rama Bijapurkar’s title, we Indians are used to a state of apathy and not really willing to do anything about the dismal state of affairs around us.  Just look at how deep rooted corruption is or the pathetic conditions of our roads and public places and you will agree. By voicing our concerns and distaste within four walls, we believe we have done our bit.

However, recent happenings lead me to believe that we are slowly changing.  Look at the hue and cry raised against the perpetrators of crimes (Jessica Lal, Nitish Katara, Koda, ND Tiwari etc) – would this have happened even 5 years back? Are we Indians slowly moving out of our complacency and actually willing to do something about it? I think so – with the likes of Nandan Nilekani moving into policy making, the signs are definitely encouraging.  Also, while in general the media is full of hype we need to acknowledge the role they have played in bringing to light some of the atrocities being carried out – like spending 20L for a trip to Delhi from Bangalore.

So, finally, Indians are realizing that they need to move beyond the talkware stage and actually get into action and be the change they want to see all around.

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Yesterday was Nandan’s last day at Infosys. As I read a news item on his farewell at Infosys, I recalled my own days at Infosys and interactions with him. I had the opportunity to work closely with Nandan while in Corporate Planning as well as Corporate Marketing.

Nandan has many positives- his big picture thinking and networking abilities have been much talked about.  I have also observed that he always has so much time ( or appears that way)- part of the reason for this is he is a master at delegation. He is also extremely good at prioritization and time management and staying focused on what matters (to him)- as he has told me many times- I am not interested in politics, cricket or movies- three things that occupy the time of most Indians- and so I have a lot of time!

All around, we observe executives who are racing against time, and projecting the impression that their life is chaotic, and that they are in a catch up mode – it is a refreshing change to meet someone who presents a contrasting picture, and to my mind, that is one key reason  for his big successes.

The other ability which is equally impressive is his associative thinking- while his memory and extensive reading contribute, there is more to it- his synthesizing skills are superb, and that is why he is able to conceptualize ideas like the flat world with relative ease.

From Prayag, we wish him all the luck in his new role.

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The big news (from the world of business) is of course Nandan Nilekani, co founder and co chairman, Infosys, accepting the invitation of India’s PM, Dr. Manmohan Singh to lead the important Unique Id creation initiative. Nandan has formally resigned from the board of Infosys, the company he co founded and  remained a part of for around three decades. His acceptance of a role in public service, though,  does not come as a great surprise as he has been over time involved in smaller scale initiatives, including the Bangalore Action Task Force, and has expressed a keen interest in contributing to the betterment of India in his recent book, Imagining India.

This is an interesting and important development at several levels. For Nandan, this is a new chapter and another great opportunity to prove his mettle, and the canvas is so much wider this time.

Infosys has yet again shown that they put public good over private good! As Mr Murthy quickly pointed out, while Nandan’s exit would be a great loss for the company, the role he would play was far more significant for the nation, and that was more important.

At a higher level, inviting an eminent professional from the corporate world to head a strategic and prestigious government initiative is an important first for India. This is more common in the US, and Anita has in fact, written a blog on this earlier.

The advantages of such a model are numerous, and we hope that this is only the beginning.

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Nandan Nilekani makes his debut as an author with an unusual theme ( for an accidental entrepreneur). Imagining India is his vision of India presented through a detailed analysis of the unique advantages India has, in the next few decades, that could become the lever for transforming the country into a world leader, as well as the hurdles we need to overcome to realize this tremendous opportunity.

The book is comprehensive and touches upon a wide range of issues – politics, economics, history of colonization, culture, globalization, democracy and demographics. The crux of Nandan’s argument though is that India is the only young nation in an aging world and for the next few decades India’s productive population will out number those that need to be supported ( both babies and old people). This “demographic dividend”, is a great opportunity, provided we make the most of it. For one, this is  a chance that comes but once in the lifetime of a nation. On the other hand, translating this to an advantage does mean that we need to work at some serious flaws in our education system, exhibit more political will and perhaps alter our world-view.

Around this central theme, Nandan discusses ideas that have arrived, in progress, in battle and to anticipate. The book thus starts off on a very positive note, and personally it was a revelation to know of the many good things that have been accomplished already, which gives us the license to dream of a great future- the advantages of the English speaking population, and growing aspiration across the length and breadth of the country to learn the language, our democratic framework, which continues to be among our greatest strengths and our vibrant entrepreneurial culture. 

Overlaid on this are ideas in progress – these include important enablers such as school education, urban development and creating a unified market. Next, we have ideas that are the bone of contention- like higher education ( the dipping quality owing in part to political interference through mechanisms like reservation), and the slow pace of reforms.  Finally, the book explores ideas that may hold the key to the future- the role of ICT, healthcare reforms, environment consciousness and energy security.

Each of these ideas have been researched in depth, from a historical perspective as also from a futuristic view. In addition, examples from across the world, of ideas that can be emulated embellish the arguments. Nandan has talked to an eclectic mix of people from across the globe, and from various walks of life. This  approach gives more power to the concepts presented, but it also makes the book a rather serious and heavy read ( 500+ pages!).

In  many ways, the book does a balancing act between the potential and the impediments, so you end the book on a  note of cautious optimism rather than with a euphoric Jai Ho feeling. However, the book definitely urges you to think constructively and coaxes you into action, because it brings to the fore the excellent work done by many, many lesser known individuals who have put their money where their mouth is.

In conclusion, this book is a must read for anyone who believes in the idea of India; it is also a recommended read for those who are sceptic about India’s future because, chances are you will not be able to ignore the logical and in depth arguments presented.

The book is very well researched, and Nandan has met scores of people from various walks of life- politicians, ministers, economists, philanthropists, historians, social entrepreneurs, movie script writers and analysts. Hence, the authenticity of content is beyond doubt. At the same time, in endeavoring for breadth of views from across the board, somewhere Nandan becomes too much of an observer, and his point of view gets buried, I thought, one reason for it not making a big impact as it concludes.

Organized

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Last night I witnessed a fascinating debate on this topic between Nandan Nilekani, author, Imagining India, and Co-Chairman, Infosys and Tom Friedman, celebrated journalist and author of the international bestseller The world is flat and the more recent Hot, Flat and Crowded world. 

It is not often that you get two people with such breadth of perspective and a passion for ideas on the same platform. Add to that, ability to think on their feet, and a great sense of humor ( especially Tom), the hour long discussion was really interesting.

Nandan spoke about the central idea of his book- the demographic dividend – and how India will be the only country in the world that will have a population profile that will have a larger proportion of productive people than those that need to be supported ( hence the concept of divdend)- interestingly, the rest of the world, including China, will have an aging population. This happens once in a life time for a nation, and this opportunity is ours to make the best of. Thus, 26/11 and the Satyam episode notwithstanding, we ( India) are poised to take the world by storm, provided we set our house in order. It was in this context that he explained why gloablization would be good for India- it will give our youthful workforce opportunities to fulfill their aspirations.

Likewise, Friedman continues to believe in the flattening world- he argued that globalization has its good and bad sides, and what we are witnessing now is perhaps the “bad side”. But, whether we like it or not, countries are interconnected like we never imagined- he quoted the case of Iceland, a country that is seldom in our thoughts when we think of global interlinkages,  but which has borne the brunt of the financial crisis resulting in the fall of its government in January 2009- once upon a time a wealthy nation, its leading banks went bust late last year, having succumbed to the lure of high risk investments!

Friedman also explained why he believed that Energy Technology (ET) would soon overtake Information Technology ( IT) as the driver of change across the globe. He also pointed out that countries like India and China could give the developed nations a stiff fight by leapfrogging ahead and embracing clean technologies ( similar to the way they have revolutionized the use of mobile technology).

Overall, the lively and engaging discussion between two die-hard optimists, ably moderated by Barkha Dutt ( of NDTV) was like a breath of fresh air and also left us, the audience, with a lot to ponder over

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