Date:07/12/2004 URL: http://www.thehindubusinessline.com/2004/12/07/stories/2004120701280500.htm

Back `Good infrastructure key to thwarting competition'

Our Bureau

New Delhi , Dec. 6

INDIA needs to take immediate steps to create a strong infrastructure and increase the intake in engineering colleges in order to thwart competition from other IT destinations such as China, Israel, Ireland and the Philippines, according to the Infosys Chairman, Mr N.R. Narayana Murthy.

"The Indian IT industry is on the right track and is growing well but we have a long way to go in order to reach our destination. We should focus on creating good infrastructure, good airports and roads, Indian companies should become more global and we should increase the intake in engineering colleges and produce more computer science students," Mr Narayana Murthy said on the sidelines of India Economic Summit 2004 organised here by the World Economic Forum and the Confederation of Indian Industry.

He said that while China, Ireland, Israel and Mexico were emerging as good competition to India in IT services, the Philippines was posing competition in IT enables services space. ``They have good quality education, availability of talent and good infrastructure,'' he said adding that the emerging locations also had offered easy market access and an environment of openness.

``In the Prime Minister Council of Trade and Industry, we had a discussion on infrastructure, especially education infrastructure... I have no doubt at all that it will receive the attention it deserves,'' he pointed out.

On the recent controversy about the infrastructure bottlenecks in Bangalore, Mr Narayana Murthy said, "There is no doubt that the quality of infrastructure there has deteriorated but it is not a recent phenomenon. The Government and industry should jointly sort out the problem, as it is not the responsibility of only the Government or only the industry," he added.

``We have to come out with models. We already have the Bangalore Task Force agenda model, which has to be revived," he said exuding confidence that the current Karnataka Government would revive it.

Asked about IT industry's suggestions for the forthcoming Budget, he said, "We don't want any tax concessions or sops. We are in discussions with state governments on the infrastructure issues and have started discussions with the Prime Minister's Council of Trade and Industry also."

The Chairman also expressed confidence that the Indo-US relations would be strengthened with the re-election of Mr George Bush as the President of US. ``The US corporate world understands the value of Indian companies. So there is no doubt that under Mr Bush, the relationship will be stronger and US corporates will continue to leverage the strengths of Indian software industry," Mr Narayana Murthy added.