THE GREAT INDIAN BUBBLE

Indian economy is the toast of the world, so think most of the Indians. This Indian economy is vibrant. The field of Information Technology is leading this Indian Economy. There are big companies; their CEO’s are coming in the list of richest men in the world. Hoards of Indian Graduates are entering the IT field for better prospects in life. They are getting starting salaries which their father’s are getting close to retirement. They are using branded articles for their elegant life styles. They are swallowed by a great wave of branded products from under-wears to pizzas.

This IT industry which is the vanguard of our Economic recovery is not doing any original work. As far as the ignorance of this writer goes, all known IT people use the word “Service” and rarely the word product. We are not producing anything which needs service but we are servicing products which are already produced in other countries. We as Indians are not producing anything worthwhile in India which can be termed as “Our” product.

All the big MNC’s are loyal to profit and nothing else. Service Industries are dangerous. Anybody who gives same service for less money gets the job. Rarely anybody who gives better service for the same money gets the job. China had a great handicap as far as English language was concerned. Indians were far ahead of them in this field. Culturally Chinese are more hard working, less complaining than their Indian counterparts. Their diligence in work is legendary and they can work more for less pay. Their Government is in no nonsense mood, intolerant of any kind of protests right or wrong vis-à-vis development. China already has a big manufacturing base unlike India. If China surges ahead in Service Industry India will be nowhere either in Manufacturing or Service sector.

Once this disadvantage of language is overcome, which will soon be the case, Chinese will simply run over the service industry. They will quote lesser price for better work in quality and quantity and all the Indian Czars will look askance at what hit them. Their shine will vanish. The hoards of Computer graduates will have no skills for survival as they know only soft options like software in their life.

To make matters worse the Indian Infrastructure is in shambles. The road conditions are horrifying, the time it takes to travel is inordinately long because of congested roads. These roads are congested because of encroachment by people who are least bothered about Indian Economy. Their aim is immediate survival by hook or crook. Government is either in “least bothered” mood or pampering them by deception.

The Indian Service Industry, with all the big names included, have never ploughed in their profits in a big way either in fundamental research or manufacturing laptops or any newer tools required in Computer industry. Indians are content to wash the dishes proffered to them by US computer giants. They do not think of producing the dishes themselves.

Thus this Great Indian Bubble is at the mercy of Chinese holding a needle to burst it. People inflating this bubble are not unaware of this future scenario. Still they are following an Ostrich policy sticking their necks deep into the profits made by washing the dirty dishes.

Immediate steps must be taken to give sops to manufacturing sector and all the bottle necks like excise and other problems which prevent smooth export. IT industry is unnecessarily pampered when it is in no way contributing to any basic and fundamental development either in Manufacturing or in Research.