This fiscal year, Indian government is expecting to receive $12 billion dollar of FDI and today, just a few years ago, IBM's chairman and chief executive, Samuel Palmisano, announced a plan that IBM was going to invest $6 billion in India in the next 3 years. In the last 3 years, IBM invested $2 billion in India and became the largest multinational company in India. Recently, Microsoft, Intel and Cisco announced plans to spend a total of $3.8 billion in India in the next few years. From these stats, you can easily realize the value of gigantic investment of IBM in India. In short, IBM is going to be the largest and most important multinational company in India in the next 3 years. Every government, loves foreign investment and thus I am sure that IBM will get some extra leverage from the Indian government.
I consider this move of IBM as shifting its operations to India. If this trend continues then within 1 decade IBM's main operation will be in India not in USA anymore. Thus, IBM will become an India based company selling its products in European and North American markets. I feel that today's announcement of investment plan by IBM is just the first significant step in this regard. So, the billion dollar question is now: Will Intel and Microsoft follow IBM in coming to India?
What do you think?
Related Articles
yeah it is possible. Though it is bit too early to predict.
Posted by: Anonymous | June 10, 2006 3:35 AM | Permalink to Comment