((Moderator SPON) chat starts at 15.10 h


(Moderator SPON) Thank you for sending in the question. We will submit them to our guests when they arrive


(Moderator SPON) Hello everybody, we will start the discussion as soon as our guests arrive. This will be at 15.10 h. You are invited to send in your questions.


(Moderator SPON) We will start the discussion now


java2: Hello, do you think that the big social differences in India hinder the development of prosperity and economy in your country?


NKSingh: Social cohision is of course very important for economic development


NKSingh: as india mondernizes and integrated the sozial differences are getting more diluted


Flockster: Dear Mr Singh and Mr Mittal, I would be interested in your opinion on the Indian potential to keep the growth rate of IT, particularly in other sectors too?


SBMittal: IT is now the bedrock of indian success, not only in the area of technology, but in sectors which are far removed


SBMittal: like agriculture, water management and poverty elimination


NKSingh: however in the longun differences arsing from pauvrety and making the fruits of developments making more ecutibly distibuted will remain a daunting challenge for economic


NKSingh: policy makers


SBMittal: IT is becoming a very important tool in the hands of policy makers along with telecommunications to bring forward the fruits of economic success of the country.


Dardalos: Will growth in India be sustainable? Will the income gaps be closed or will only few benefit from growth? How can it be assured that all benefit?


NKSingh: yes, growth will be sustainable and as public investment will incrisingly focus on the social sector leaving private sector greater oportunities to invest in other areas


NKSingh: income gaps will close faster


KarlSchwarz1: When does India intend to reform their bureaucratic customs regulations in order to be regarded a viable and comparable member in the global industry?


SBMittal: A tremendous progress has already taken place in the customs regulations in the country and india's customs regulations


SBMittal: are now already tied with the international regulations


NKSingh: As indias former revenue sector tree I was directly looking after tax and customer reforms


NKSingh: As custom duties has come tramatcly aligning to avarage asian rates and ports come under electronic data processing the role custom burocracy has and will further


NKSingh: get diluted


tareshd: Mr. Singh and Mr. Mittal, where do you see the role of the government in providing an atmosphere for foriegn investment similar to that, say in China


SBMittal: India is already attracting FDI to the tune now of four billion dollars a year, while it is much lower than china, but the trends suggest that india can achieve over ten
SBMittal: Billion dollars per year once investments come in the area of real estate, retailing, additionally in telecom etc.


NKSingh: I recently chaired a commity which submitted a report on fdi


NKSingh: the report makes substantion recommandations on sector caps, administrativ simplifications, single window clearace by state goverments, policy changes in key


NKSingh: segments to attrac foreign investments


NKSingh: quite a few of these are being implemented


NKSingh: fdi is already looking up


hanneskloepper: Do you think India with it's prospering economy will get into conflict with the US? And how will its political and economic ties to europe develop?


SBMittal: As India prospers, it further integrates with the global markets and becomes less fearful of getting overshadowed by the west.


SBMittal: Therefore, more prosperity in India will bring it closer to the US, the other large democracy.


Marvin: What do you think would be a way for India to cut down corruption at all levels of society?


NKSingh: The bases of corruption is controlsand discretonany powers as economic reforms gather momentum and more and more activity is decontrolled with transperent


NKSingh: regulatory structures the scope for corruption will come down.


NKSingh: The right to information bill will make gouvernement more open and accountable


SBMittal: As the Indian administration becomes more transparent and the controls in various sectors are lifted, it will bring about a society which is relatively free from corrupti


SBMittal: The last few years have already witnessed big change in the relationship between the corporate world and the policy makers. A free and fair press will further insure that


SBMittal: corruption goes down in society.


NKSingh: political reforms suggested by the constitutional reform comittee is also important


robbi1: How are the chances in India for foreign IT high potentials, better than in US?


NKSingh: Stock exanges


SBMittal: IT is always free from locational disadvantages and IT professionals can conduct their work and pursue their career in India as they would be in the US.


SBMittal: India today offers a very stimulating environment in the IT sector with the software sector and the IT-enabled services growing at a very rapid pace.
Guest14: Is there a sense, to support the indian stock exchange more, then it has been done before ?


NKSingh: Stock exanges need to be market driven and not gouvernement propt what is important is to have credible regulatory mechanism, which can inspire investor confidences


NKSingh: the change in the functioning of SEBI is desingned to achieve this very objectif


NKSingh: restoration of small investor cofidence is the biggest impetus to stock markets


shyam77: What is the biggest hindrance to industrial growth? How does the continuing population growth affect the growth?
SBMittal: The stock markets in India are very well evolved as they have a long history. The stock exchanges are now fully computerized.
SBMittal: Most of the stocks are demutualized to a depository system and settlements have become in line with international best practices.


SBMittal: The government has taken several initiatives to further make the stock market attractive.


NKSingh: Elimination of subsisting contols, labour reforms, competitif cost of financing, improving infrastructure and adaption of company prctices and processes to meet


SBMittal: On the one hand, the burgeoning population puts strain on the natural resources, but on the other, it is becoming a big tool to


SBMittal: earn the economic opportunities that agriculture and more importantly, the back offices like call centers is giving to India.


NKSingh: competitif challenges all require simultanious attention.


SBMittal: Suddenly, the Indian population problem is turning into an asset.


NKSingh: popullation pressure doesn't hurt but helps


NKSingh: because it creates greater demand as real incomes continue to rise


RohitVepari: How is high end appliance industry's growth potential ?


SBMittal: The large consuming class in India is moving economically and are becoming consumers for higher end appliances. There are 40 Million Indians who have the economic capabil


KarlSchwarz1: Gentlemen, which other industries next to IT do you see next in line of development in India?


SBMittal: capability to aspire for high end appliances.


SBMittal: Biotechnology, Retailing and development of urban real estate and telecommunications


NKSingh: Pharma, biotechnology, infrastructure (particulary power and ports) and the service industry will be high growth point


ramesh037: Why are Indians so arrogant to learn from other countries, example, which has a very standard of qualified vocationally trained people?
SBMittal: I disagree.


NKSingh: me too


NKSingh: not all indians are arrogant


SBMittal: Indians have great patience to learn and listen to the world and it is no wonder taht indians who have settled overseas


SBMittal: have made a great success through learning from their host countries.


NKSingh: ba enlarge they are willing to learn, arrogance whether in india or anyone else is a function of ignorance as development and education


NKSingh: gather momentum


SBMittal: indians are generally intellectually strong and may sometimes appear to be arrogant


NKSingh: this ignorance will rapidly diminish


Dardalos: ramesh037: none of the indians I met were arrogant (and I met a lot)


SBMittal: especially if they are being forced to learn in certain situations.


ramesh037: Then what are other industries are being promoted? I am not putting personal questions.


manosh1: Sir, why is it said that Indians are successful every where but in India?


SBMittal: Good question.


SBMittal: India still has not become a process and system oriented society, whereas an Indian is intellectually highly capable when they move to the western world


SBMittal: when they find themselves in an organized world and can use their talent in a highly organized manner , thereby achieving success.
SBMittal: Just like a westerner will fail in a chaotic environment, an Indian thrives in an organized environment.


ramesh037: Is IT the only thing that is going to bring India forward?


NKSingh: No, lots of more things infrastructure improvement, quest for knowledge economy highli competitif service industry coupled with manufactory and more productive


NKSingh: agriculture will all make important contribution in taking india forward


Dardalos: How are international cooperations between indian and foreign firms fostered? Or do you actually see the need to do this?


SBMittal: india in a very open manner seeks cooperation with large international companies
SBMittal: and there are hundreds of successful joint ventures


SBMittal: and wholly owned subsidiaries which are making a strong impression in the indian market.


SBMittal: for example : toyota, suzuki, IBM , cisco ...


SBMittal: singtel and others


ramesh037: Mr. Mittal, you say India is not a process/system oriented societty. Germany did this first, then the rest. That is why they are what they are.


SBMittal: I agree. Germans are extermely organized and the educational training and the governance of germany relies on very strong processes and systems.


SBMittal: india is developing in this area and I can personally sense that happening.


(Moderator SPON) Mr Singh, which manufacturing sectors did you mean?


NKSingh: Particularly rejuvination of some old industries like textiles, sement and steel apart from pharma.


Marvin: What are the most important skills for westerns working in india?


SBMittal: patience , for one i guess.


NKSingh: Tolerance,


SBMittal: Getting integrated into the local society


NKSingh: understanding of local sensitivities


SBMittal: getting used to the extreme weather conditions


NKSingh: and teaching while learning and learning while teaching.


SBMittal: and of course enjoying the indian cuisine


msweys: Given the situation of sars: what influence would a spread of the desease have on the indian growth rate?


SBMittal: india has been fortunate to not have the problem of SARS.


SBMittal: however, it is a matter which india needs to guard itself against.


NKSingh: So far india has fortunatly escaped the SARS, we hope and have taken precusions to make sure it remains this way


panjabiMC1: Outsourcing of western firms- the only way for India?


SBMittal: It is one of teh big opportunities of this century for india


SBMittal: and india is fully prepared, with trained people and robust telecom networks. I predict that India will become the center for backoffice for the entire world.


John1: What will be the effect of military spending and neighbourly tensions on the prospects for economic growth?


NKSingh: India continous to belive that indo-pakistan issues should bilateraly.


NKSingh: Condusive condissions like ending crosboarder terroism is important for talk to progress.


NKSingh: we hope the initiative of the indian prime minister to restart the process, and the step - by - stwep approache suggested by india will lead to positive outcome


NKSingh: both contires will benefit from restoration of normalcy and this would help the development process


(Moderator SPON) Thank you, everybody, for participating. Unfortunately, there have been far too many questions. Thank you Mr. Singh and Mr. Mittal


Dardalos: Many thanks for the opportunity in this interesting constellation!


Guest14: Thank you, Gentlemen


(Moderator SPON)We are very sorry that we could not let most of your questions. Our guests did their very best to answer as many questions as possible


KarlSchwarz1: Gentlemen, thank you for some very interesting thoughts.