Title: Nehru & Indira drove away Intel from India; it went to China: BJP
The recent statement by BJP MP Nishikant Dubey has sent shockwaves across the country, sparking a heated debate about the nation’s tech industry and its historical decisions. Dubey claimed that the former Prime Ministers Jawaharlal Nehru and Indira Gandhi were responsible for driving away semiconductor companies like Intel and Fairchild from India, ultimately leading them to set up shop in China.
The statement, made on social media, read: “It was because of Intel that Silicon Valley developed in America, where more than half of the jobs are held by Indians.” Dubey’s assertion has raised several eyebrows, with many questioning the accuracy of his claim. However, it is essential to delve into the history of India’s tech industry to understand the context and validity of his statement.
India’s tech industry has a long and complex history, with several factors contributing to its growth and decline. In the 1950s and 1960s, India was actively pursuing a policy of self-reliance, which included the development of its own industries, including electronics. The government of Jawaharlal Nehru, then the Prime Minister of India, was keen to promote domestic industries and reduce dependence on foreign imports.
As part of this effort, the government established the Indian Telephone Industries (ITI) in 1948, which was tasked with manufacturing telephones and other telecom equipment. Similarly, the Indian Electronics Corporation (ELSIE) was set up in 1964 to promote the development of the electronics industry in India.
However, the Indian government’s policies towards foreign investment and technology transfer were often restrictive and bureaucratic. This created a hostile environment for foreign companies looking to invest in India, including semiconductor companies like Intel and Fairchild. The companies were reluctant to invest in India due to the lack of a supportive business environment, inadequate infrastructure, and unclear regulatory frameworks.
In the 1970s and 1980s, India’s tech industry began to stagnate, and the country’s dependence on foreign imports only increased. This was partly due to the government’s restrictive policies, which discouraged foreign investment and technology transfer. The industry also suffered from a lack of skilled manpower, inadequate infrastructure, and a deficient regulatory framework.
Indira Gandhi, who was the Prime Minister of India from 1966 to 1977 and again from 1980 to 1984, continued the policies of her father, Jawaharlal Nehru. She was known for her strong leadership and her commitment to socialist and self-reliance policies, which often prioritized domestic industries over foreign investment.
It was under Indira Gandhi’s regime that the Indian government nationalized several industries, including the electronics sector. This move further stifled foreign investment and technology transfer, making it even more challenging for companies like Intel and Fairchild to operate in India.
In the 1980s, China began to open up its economy, and it started to attract foreign investment and technology transfer. China’s policies were more favorable towards foreign companies, and the country’s infrastructure, skilled manpower, and regulatory frameworks were more conducive to foreign investment.
As a result, many semiconductor companies, including Intel and Fairchild, began to set up operations in China. China’s large domestic market, favorable policies, and skilled workforce made it an attractive destination for foreign companies looking to invest in Asia.
In conclusion, while Nishikant Dubey’s statement may be sensational and attention-grabbing, it is not entirely inaccurate. The restrictive policies of Jawaharlal Nehru and Indira Gandhi, including the nationalization of industries and the lack of a supportive business environment, did drive away foreign investment and technology transfer, including that of semiconductor companies like Intel and Fairchild.
India’s tech industry has struggled to recover from the impact of these policies, and it has taken several decades for the country to regain its footing. Today, India is home to a thriving tech industry, with many domestic companies and startups driving innovation and growth.
However, it is essential to acknowledge the role that Nehru and Indira Gandhi played in shaping India’s tech industry. While their policies were well-intentioned, they ultimately had a negative impact on the country’s ability to attract foreign investment and technology transfer.
As India looks to the future and seeks to become a major player in the global tech industry, it would do well to learn from its past mistakes and create a more favorable business environment for foreign investment and technology transfer. Only then can India truly unlock its potential and become a leader in the tech industry.
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