“There is no dearth of technical talent in India but, we have not been able to utilise the talent to create our own “Silicon Valley” as well”. Discuss the factors which are inhibiting the development of world-class technology based enterprises in India.

1. Culture/Mindset: More inclined towards service than manufacturing.
2. Risk Taking Appetite
3. Industry-Academia linkage:

• Stanford University in Silicon Valley; Companies like HP, Google, Cisco
• High investment by industries on RnD
• New Jersey failed to replicate the California model precisely because they could not create a robust Industry- Academia interface.

4. Inspiring teachers and guides like Frederick Terman => encouraged Hewlett and Packard to open an enterprise from a garage.
5. Infrastructure and governance
6. Paucity of Capital
7. Quality of Skill set of supporting personnel

* WB's Ease of Doing Business Report 2015: India's rank is 142/189

Reference

Cleaning of Ganga

Recently a consortium of seven IITs came up with a report on the level of pollution of River Ganga.
The consortium is preparing a Ganga River Management Plan

1. What did that report say?

• Attempts to clean Ganga by conventional pollution controlled methods have proved to be ineffective
• Dams and barrages have snapped its longitudinal activity 
• Human activity including industrialization, urbanization, deforestation and a complete absence of provision along the river for waste water disposal has reduced the Ganga to its current condition
• Ecological restoration is one area which needs immediate restoration

2. What is the objective of National Mission for Clean Ganga
By 2020, no untreated municipal sewage or industrial effluent will flow into the Ganga.


Q. Despite several initiatives taken for cleaning the River Ganga, the river is still to be restored into its pristine form. Describe the reasons of the current state of the River Ganga and various steps taken by the government to clean it. What do you think could be the reasons for the failures of all such attempts?

India ASEAN FTA in investment and services

India recently signed an FTA in investments and services with ASEAN.

1. What is India going to benefit out of this?
Ans :

• It will help integrate Indian economy with the booming economies of SE Asia.
• Helps indirectly in strategic partnership 
• Indian Ocean Maritime Security
• Growing China's presence in Indian Ocean Area
• Opens up market for Indian professionals and service exports.

2. But India has already signed a FTA in trade with ASEAN. Did it help India in economic terms?
Ans: Indian FTA in trade with ASEAN did not lead to expected results because to an extent of India's inherent issues.

• Poor manufacturing base ==> our products could not compete with Chinese or Korean
• The same reason didn't let imports of raw material to boost

3. Then how is this new FTA going to help?
Ans:

• Service sector is India's strength. We can leverage it in ASEAN market
• Our work force in Service sector is highly skilled. They can utilize the booming market of ASEAN nations
• An agreement in investment would boost capital inflows and outflows. We would get necessary capital for our infrastructure and other needs. Our investors can put their money in the booming upcoming market and earn healthy returns.

4. OK so what could be the concerns related to it?

• The Philippines, a competitor of India in service sector is a member of ASEAN. 
• There was an economic crisis during 1999 in this part of the world. India should tread with caution.