 "John T Chambers")
John T Chambers, the 66-year-old executive chairman, Cisco Systems, has been known to be bullish about India for decades. In 2005, Cisco set up its second world headquarters outside the United States in India, with an investment of $1 billion. Around 18 months ago, Chambers said if he was to bet on one emerging market, it would be India. On Friday, following a meeting with Prime Minister Narendra Modi, Cisco announced a $100-million (Rs 665-crore) plan to accelerate Digital India. Chambers shared his take on Cisco's investment and manufacturing plans, challenges in India's digitisation journey, and opportunities for Indian start-ups, among other things. Excerpts:
On the meeting with Prime Minister Modi and Digital India vision.
The country is very lucky to have a visionary prime minister. India is well-positioned to lead in digitisation - it is changing the lives of every citizen, every city, and every state. India, known to be slow followers, is set to leapfrog ahead of others in digitisation. We are aligned with the prime minister's digitisation plans. If Digital India is done right - and I do not underestimate the challenges - India can become a manufacturing powerhouse. In another four years, 40 per cent of big companies will disappear - and it will be the start-up communities that will create the jobs. You will see us making strategic announcements from time to time in Skill India, Start-up India, Make in India, and Digital India. As part of the $100-million (Rs 665 crore) investment to accelerate digitisation in the country, there will be six new innovation labs and three centres of excellence, in partnership with states.
On the challenges for India's digital journey.
There will be a lot of hard work, there will be bumps along the way, along with business risks. When setbacks occur, the critics come out. The issue is how fast you can move. Then you have to build a broadband network in as many cities in the country. You have to get your role models in industry, manufacturing, and start-ups. The government has to make changes in regulations or India will never become a manufacturing hub.
On opportunities that Digital India offers to start-ups.
Every service that a citizen needs - health care, education, manufacturing, entertainment - has to become digital. The biggest game changer for start-ups is to create a digital environment.
On Cisco's investment and manufacturing plans in India.
We are investing in more and more start-ups. Of the $100-million investment, around $40 million will fund early-stage and growth-stage companies in the country. We have invested in 25 start-ups and acquired one. The digitisation effort will boost start-ups.
We have identified Pune as our venue for our manufacturing base. We recently brought 93 of our top suppliers to the country. We want to make it a hub for manufacturing, not only for India, but also for the world.
On how India has evolved as a revenue market for Cisco.
In India over the last seven quarters we are growing on an average of double digits. In the last two quarters we grew at over 20% growth rates. Very often companies make the mistake of focussing on the short-term. At Cisco we don't compete against competitors, but against market trends.
