Tuesday, September 30, 2014

Modi's speech at Madison Square Garden!

1.            Modi made a case for India to be the leader of 21st century, not China. For this he put 3-D value proposition (Democracy, Demography (young nation) and Demand). This is a direct hint to American businessmen. This week’s Hong Kong demonstrations proved that China’s democracy is weak; China is getting old (by 2030 – another 15yrs, china will start getting old) and China’s weak internal consumption (its economy is export economy and not consumer economy like India).

2.            Modi is hinting American industries to invest in and work with Indians. He made few points to this effect – Asking Indians to return (this will weaken American companies that depend upon India), Hinting that India will need 2kinds of FDIs (Foreign Direct Investment must First Develop India) and also visa on arrival for Americans. He is kind of saying imagine you have New York and San Francisco offices then add Madurai office also. You can travel to these offices within the day because I am developing smarts cities etc., Imagine what happens if 50% of skilled NRIs return. These will be 1 million (10 Lakhs) high tech jobs which make >$100K (Rs 60 Lakhs) per yr. You are looking at $100Billion (6 Lakh Crores) revenues to India every year.

3.            The key industries Modi is trying to pitch to America are – Tourism (Yoga/Hindu places – there are ~20 million Yoga practitioners in USA – imagine they visit India every year/two yrs. It will be $20+ Billion/120,000 crore tourism industry), Technology and Education. He knows that the biggest problems in realizing this potential is (1) Visa/Governance– Hence Visa on Arrival (2) Cleanliness – Lack of public involvement in cleanliness, hence Swaccha Bharat plan (3) Skilled Human Resources - Hence Education/Skill Development programs (4) Cultural Heritage – Hence “Har Har Gange” Plan (for Yogis) (5) Civic Amenities – Hence Smart cities and so on..



It’s all about bringing the Indian-American (scientist-professional-business) collaboration that worked very well in USA to India. He is going to develop India as Bharat; not some Philippines or South Korea or Malaysia (notice his mention of them developing as someone else).