‘Still a Long Way to Go,’ says US Commerce Secretary
20 September 2012
Calling India a “pioneer” in technology, US Commerce Secretary Gary Locke lauded Indian entrepreneurs for their work in developing Indian business practices that enable the delivery of high-technology solutions at low prices.
Locke, who visited India as part of a trade delegation of American high technology companies, said that kind of thinking “is critical to all countries, but especially for those countries in Africa, Asia, and elsewhere trying to pull themselves up the development ladder.”
Locke delivered his comments at the Indian Institute of Science in Bangalore. He said the companies taking part in the trade mission “are companies that can help India grow its economy, build up its infrastructure, and create good jobs for people in India and America.”
Saying the times are both “frightening and exciting,” Locke told students and faculty that India now has 45 million entrepreneurs, “most building small businesses, some building big businesses, but all contributing to an economy that boasts a middle class as big as the entire population of the United States.”
Locke said that while by using their talent, creativity and ingenuity, the assembled students have the power to make a real difference, he said that “to spur the new technologies India needs to grow its economy and help solve the world’s problems, we hope India will continue working to create a commercial environment that is more open and more friendly to competition and innovation.
“Great progress has been made, but there is still a long way to go in India’s effort to create a system of laws, and a regulatory infrastructure that encourages the freer flow of ideas, people, and technologies across its borders. A system that supports aspiring innovators like all of you,” Locke said. “To cite just one example, India is still working to establish a robust system of intellectual property protection – which is an absolute cornerstone of an innovationbased economy.”
Over time, he said, countries that do not have strong intellectual property protections will face two equally unappealing options: “Either their scientists, engineers and businesses will lose the incentive to innovate. Or they will decide to innovate somewhere else,” he said.
iGATE Closes on Largest Indian IT M&A Deal
Khaitan & Co advised iGATE on its purchase of a controlling stake of Patni Computer Systems from the promoters of Patni and General Atlantic Partners, according to a firm statement. The US$1.223 billion deal, including the open offer of 20%, made it the largest acquisition of an Indian software exporter by another Indian firm.
The deal was also the largest M&A transaction in the Indian IT industry. After the buy, iGATE will become a billion-dollar company with 25,000 employees, said Rabindra Jhunjhunwala who, with Haigreve Khaitan, were the Khaitan & Co partners in charge of the transaction.
