IndiaThink

Pot Holes that Just Won't Quit by Design

Greetings friends....thanks for allowing me to take a bit of a break while I settled into my new home in New York City. Onward!

I have talked before about bribery and corruption in India on a few occasions--and every occasion was met with refutes from the field.  Every time I find an article that supports my position I make an effort to post it so visitors to India can begin to understand how the inner workings of the country effect their everyday lives.  A recent post in the IndianExpress is a perfect match.

Karnataka which is the Indian state the holds Bangalore and Mysore both considered wealthy cities by most standards is looking into the problem of pot holes.  Specifically: why do they keep coming back?  The high court in Karnataka recently stated:

“They (Bangalore Mahanagar Palike) want the roads to remain in good condition only for two months so that they get kickbacks from the contractors for awarding relaying works. The palike does not want the road to be in good condition even for two years.”

I was once driving through Bangalore during a rain storm.  Bangalore does not get the rains of Bombay --- monsoon like rains that happened during this visit.  As we floated over to the call center on roads that were slipping over with water in our SUV we watched with horror as the beautiful lines that bring data into and out of the region were slip--slip--sliding around on the side of the road.  They had been unearthed and were floating there in all of their orange and blue glory. 

Many travelers complain about the infrastructure in India and this opinion piece is a testament to how far India has to go to build a sound foundation around all of the bubbling growth that has brought extensive capitol into the region--this region in particular has highly profited from Western investment into technology and customer service facilities.  Its time for India to take these proceeds and plan for the future needs of their state so they can continue to offer world class talent to the world.

India's Infrastructure or India's Global Reach?

Week of Nov 5th’s Fortune Magazine has a feature on India focusing on the changes in its dynamics, clout, innovation, and business world over the past ~15 years. Highly recommend you read this article and enjoy some of the pictures that precede it. India is in the middle of a marketing blitz around its 60th anniversary of independence.  These efforts have been subdued in the press as most of India’s coverage this week surrounds their inability to pass nuclear accords with the US and details the Prime Ministers extensive efforts to convince the world that India continues to be "open for business" regardless of its political choices.

The author has a few messages sprinkled through out the piece but one that I believe must be brought to the surface is the economic and political structures in India and how they have done little to encourage growth inside the continent.  One feature inside the piece details a Hyundai venture located in Chennai.  The plant is highly successful but not without challenges--all of which surround infrastructure.  Or rather the lack of it.  Problems like difficulty in delivering products to nearby ports and no government support in its efforts to get water, electricity and other energy sources required to support its operations.

These are very important considerations that companies must understand as they enter the India market place.  The complexities abound around getting the right infrastructure to make your strategy work.  As the author states “China outspends India on infrastructure by a ratio of 7 to 1. The result: India’s manufactures pay twice as much for electric power as do their Chinese counterparts and three times as much for railway transport.”  These numbers are staggering for groups interested in moving into India for manufacturing.  Hyundai took on an Indian location based on a rejected application to China; their first choice.  How will India solve these problems with a government that has a ‘dysfunctional political system---driven by caste, religion, party and faction?”  As competiton heats between these two asian giants India must face its infrastructure woes and solve them.  Its unclear how long it will take the government to wake up to this harsh reality--my prediction is that its going to take a while.  India has grown too accustom to daily power outages and other infrastructure failures.  And the way India has grown has not been like China, through its government.  Rather it has been in spite of it.