September - 2001 - issue > Cover

Not long ago, entrepreneurs and venture capitalists shuddered to think of locating in the Punjab region. It was, in their view, risky terrain. But times change, and over the last two years the northern state has spawned major IT companies and startups.

Firms such as Infosys, Tata Interactive Systems, Quark Media house, Compu Info (New Jersey), NYX Software (Detroit), Sigma Interactive Technologies (Alabama), Future Computing solutions (California), and Optimize (Virginia) have set up shop here.

Though the state ranks low in the overall Indian IT market in the country, it’s quickly catching up.
Government and VC funding are flowing into the region, boosting hopes for it to become an IT hub soon. The Punjab government is focusing on Microsoft for a major partnership, which could trigger foreign investment into the region. The proposal involves several joint projects, including creation of a software development center devoted to e-governance projects.

The government hopes to provide Internet connectivity, voice communication and cable TV on a single line to consumers. Observers say that, while the rest of India is suffering from underdeveloped infrastructure, Punjab enjoys being the leader in infrastructure development and is set for progress without hindrance.

The electronics township known as ELTOP, a massive 300-acre industrial complex, was built in the state capital, Chandigarh. It has become the largest conglomerate of the telecom industry in the country. The IT park has already attracted more than a hundred companies, making it one of the most preferred IT destinations in the country.

Despite these successes, Punjab’s contribution to software exports remains relatively very low. Plenty of interesting work is underway that may spring a few surprises in the near future.