India-Flavor of The Season
Date: Tuesday , December 27, 2005
India seems to be the flavor of the season. Not only is the economy blooming but the country has also attracted global corporate giants to invest mega bucks. Three multi-billion-dollar investments were announced back to back by tech giants —Cisco, Intel and Microsoft.
The first off the block was IT and telecom networking company Cisco Systems which announced a $1.1 billion investment in India over the next three years, a bulk of which would be spent on R&D efforts and acquisition of tech startups in India. “It will be the largest investment announced by Cisco outside of the United States in scope of activity and size,” Cisco President and Chief Executive Officer John Chambers said.
Soon after the Cisco commitment comes the Intel investment plan. Intel chief Craig Barrett announced a multi-year investment plan for India, totaling over $1 billion, including $800 million over the next five years for business expansion.
The investment would focus on expanding the research and development center in Bangalore, in addition to marketing, education and community programs. The investment roadmap also has a provision for setting up a $250 million venture capital fund in India.
At the heels of Intel, Microsoft Corp chief Bill Gates said the company would invest $1.7 billion in India and add 3,000 jobs in the country over the next four years, nearly doubling the world’s largest software company’s workforce in India.
A total of $3.7 billion will be pumped into India in the next five to six years, making India the destination of choice among the technocrati.