Nehru & Indira drove away Intel from India; it went to China: BJP
The Indian technology industry has been a subject of fascination for many years, with its IT giant, Infosys, being a household name globally. However, the journey to this success was not without its twists and turns. Recently, a Bharatiya Janata Party (BJP) MP, Nishikant Dubey, made a sensational claim that will send shockwaves through the Indian tech community. According to Dubey, it was the policies of former Prime Ministers Jawaharlal Nehru and Indira Gandhi that drove away semiconductor companies like Intel and Fairchild from India, ultimately leading them to set up shop in China.
Dubey’s statement, made on his official Twitter handle, sparked a heated debate among tech enthusiasts and historians alike. While some have praised Dubey’s claims as a wake-up call to the Indian government, others have dismissed them as mere speculation. But is there any truth to Dubey’s assertion? Let’s delve into the history of Intel and Fairchild to find out.
Intel, the American multinational corporation, is one of the world’s largest semiconductor companies. Founded in 1968 by Gordon Moore and Robert Noyce, Intel is known for its microprocessors, which are the brain of most modern computers. Fairchild Semiconductor, on the other hand, was a pioneer in the development of the first commercially viable integrated circuit. The company was founded in 1957 and was later acquired by Intel.
In the early 1970s, Intel and Fairchild were both looking to expand their operations globally. India, with its growing economy and large talent pool, seemed like an attractive destination. However, according to Dubey, the Nehru and Indira governments created a hostile environment for these companies, driving them away to China.
So, what exactly did Nehru and Indira do to scare off Intel and Fairchild? The answer lies in the policies and regulations of the time. In the 1960s and 1970s, India was still a socialist country with a strong emphasis on state-led development. The government controlled many sectors of the economy, including technology.
One of the key policies that affected Intel and Fairchild was the Foreign Exchange Regulation Act (FERA) of 1973. FERA made it difficult for foreign companies to repatriate profits, effectively limiting their ability to invest in India. This led to a significant reduction in foreign investment in the country.
Another factor that contributed to the departure of Intel and Fairchild was the lack of a favorable business environment. The Indian government’s policies were often seen as unpredictable and bureaucratic, making it difficult for foreign companies to operate in the country. For instance, the government’s insistence on 51% foreign equity ownership in joint ventures was seen as a major obstacle.
It is also worth noting that the Indian government’s focus on public sector industries, such as Hindustan Computers Limited (HCL), a precursor to the modern IT industry, may have also contributed to the lack of interest from private companies like Intel and Fairchild.
In contrast, China, with its more open economic policies and favorable business environment, proved to be a more attractive destination for Intel and Fairchild. The Chinese government’s willingness to offer concessions and incentives to foreign companies helped to establish a strong foothold for these companies in the country.
Dubey’s claim that Intel’s presence in the United States led to the development of Silicon Valley is also worth examining. While it is true that Intel played a significant role in the development of Silicon Valley, it is not entirely accurate to say that the company’s presence was the sole reason for the growth of the region.
Silicon Valley’s growth can be attributed to a combination of factors, including the presence of Stanford University, the Defense Department’s funding of research and development projects, and the entrepreneurial spirit of the region. Intel’s contribution was significant, but it was just one part of a larger ecosystem that fostered innovation and entrepreneurship.
In conclusion, while Nishikant Dubey’s claims may be sensational, there is some truth to his assertion that the policies of Nehru and Indira Gandhi drove away semiconductor companies like Intel and Fairchild from India. The lack of a favorable business environment, coupled with the government’s emphasis on public sector industries, created a hostile environment for private companies to operate in India.
However, it is also important to recognize that the Indian technology industry has come a long way since then. Today, India is home to a thriving IT industry, with companies like Infosys, Wipro, and TCS leading the charge. The government’s policies, particularly since the liberalization of the economy in the 1990s, have been more conducive to private sector growth.
As India looks to the future, it is essential to learn from its past and create a business environment that is attractive to foreign companies. By offering concessions and incentives, while also promoting indigenous innovation and entrepreneurship, India can become a major player in the global technology industry.
News Source:
