India has still a long way to go

The Rediff Interview with Michael Porter, head, Strategy Insititute, Harvard with title 'India still has a long way to go' by Manjari Raman posted on December 29, 2004 at http://us.rediff.com/money/2004/dec/29inter.htm

More than one way he says, that Indians are good, but India as a business environment is not (yet).
"Indians come to the US and they thrive! They build great companies, they're global. Isn't that a wonderful metaphor for what we are talking about?"
"Although the Indian business environment is improving in multiple respects, it has some fundamental weaknesses. Number one, the capital markets remain relatively weak and undeveloped. Number two, the physical infrastructure is abysmally ranked."

"Indian firms face a really compelling logistical disadvantage over companies in China in terms of getting goods and services to market. But the most pernicious problems in India--which are still not being confronted head-on - are the pervasive barriers to competition"

"China has taken better advantage of that than India has because China is in many ways more open, more dynamic. We've seen many more companies come into China because that's such a dynamic place. The business environment is a bit more efficient, which is why multinationals use China as an export platform. But we don't see that much in India. The multinationals are there primarily just to do business in India and sell to the Indian market"

Some more perceptions, we often hear from some or the other, some times from Indian entrepreneurs in US itself

"India needs to learn to be more self-critical, more open, and much more honest about what needs to be done"
"India is getting tremendous international profile from IT service exports, but they aren't indicative of the broader economy."
"India is doing quite well in IT-enabled services, but to a considerable extent, that's it"
"it is still too early for India to think it has been successful -- or even partially successful"
"India has a tremendous tendency for overstatement"
"Indians don't take criticism well. They get very offended"

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