i am not advocating socialism or communism or whatever.

ok let me post my views in another post and be done with it once and for all…

if sensex is not a indicator of the country economic growth .then what about the govt economic growth rate, industrial output..they are also high.shouldn’t that be an indicator.

if iam earning 50K per month.should not i spent it in a resort in ECR??.Isn’t that what we strive for, earning money to spend it as the way we want it.prachu there has always been rich people.if not for an IT guy a rich industrialist or a jeweller would go and spend it there.what do you think is the solution for this prblm?
Are u advocating communism??/socialism??.I thought u were blaming the govt.Are u blamming the people also??.

Think we seem to agree with villages.LEt’s talk about town and cities.when i grew up we were a middle class there were lot of rich peoples than us.I didn’t have any ill feeling.U accept the situatino and strive for best.Now i have grown up a bit in my economic standing. Think i can call myself upper middle class.And this is the case with many peoples in IT.

Think +ive abt this.Say if the upper middle class was 3% 10 yrs before now, probably it is 8% now.more people are moving up on the economic ladder,which is good.you are advocating that 100% people should move up at the same instance, which is not possible.

First and foremost did i ever deny the trickle effect? No. but its just ridiculously low and an inappropriate model for a country like India as a whole.thats the whole point.

Infosys can do much better than build a hotel for themselves frankly.
money always trickles from the rich to the poor. i dont see that as an active contribution, it happens by default. they dont have an option do they?

my fathers periappa and his sons, jewellers paid lakhs as taxes. and obviously wud have spent a lot for their luxuries. what matters is how productive its for the economy?
i dont think they deserve to be appreciated for the contribution to the economy or whatever.
if at all there is anyn contribution its just like any tax payers contribution.

think abt it, IT industry as such do not need capital like other industries. they are just getting themselves filthy rich and yes they do go to and from pondy every weekend to have fun. idhaan reality.of course all the resorts in ECR road caters to this niche group.
yr trickle down effect.

if u ask me if this is contribution, it is i agree.
but its no the ideal kinda method to contribute to the countries economy. a poor country like india.

Again i dont think Indian auto industries and pharma are happening places now bcos of IT.
that statement effectively undermines their capability. they are doing well bcos of liberalisation and they are intrinsially good so they can stand the international competition.its got something to do with liberalisation policy and not IT.Period.

Lets face it Indian IT industry is good. we rake in the moola. we are economical. we offer value for money for foreign customer. US economy has more sya on the IT industry than indian govt or economy.
i am not denying this at all. its like sachin tendulkar getting a 300 when india is bound to lose.

u r talking abt the mumbai share market and attribute its boom to IT industry?
just put a cap on FII exposure and u will see where the sensex will head to.
And no the stock broker community has not been the key deciding community as far as yardstick for india’s development is concerned. when did harsad mehta got rich? long before IT revolution. he got caught in 92.

As u say, this does not gets translated to rural areas.

i am saying there are sections in urban areas even where there is a huge division which can be addressed and if dont address it there will defintely be unrest in the country’s IT centric cities. This trickle down or whatever is just like water trickling down from mettur dam.this is not going to save the crop(whatever little) in tanjore.idhan en point.

u r living the life of a king ammidst a country of poor people and this will impact the mentality of others when u dont even seem to try to understand their plight and help their cause.
u can say nothing can be don abt it. i say if we try to address the imbalances at least there will not be unrest.

its very difficult to live in a city with 5000 6000 bucks per month senthil. thanks to IT revolution. just bcos i am getting much more does not preclude me to talk on behalf of those 6k pm guy’s plight in a city like chennai.

politicial interference are there in a few cases in IT industry. But it is not suffering like other industries because of that.

And most of the buisness man dont talk against politicians. Since the days of kings they have been people who try to win favours from the authority than fight agaisnt them.

Today most of the big auto giants have research centers in india.And more people are wanting to manufacture spare parts in india.similarly pharmacheutical industry is also setting up or going to set up research centers in india.

infosys is building the hotel for its guest.but who is going to work there.not an mca or a BE guy.That is exactly trickle down effect.

Yes some of them are investing and some of them are not.where is the money going?. it is with the share holders.who might be a businessman a NON IT guy.He in turn might again invest in another non IT company.Why do u think the indian stock market sensex index is hitting the top, if only one sector is growing.

why is the real estate going up?.why
does every foreign automobile company in the world is entering india?.why does new foreign style shopping centers are coming up?.Think about all the above scenoarios, here the buyer might be an IT guy, but how many non it people are benefiting out of it.

So to answer ur question it is not one cell that is growing, many cells are growing, but the growth area is very less compared to the total area.The benifits have been trickling down in cities and towns and not at a greater level into villages.That’s why we have to develop a rural economy .

the idea is u need not have huge capital investment for this services sector in general.
so they opted for the principle of least interference, FDi etc.

villages… adhelam India va enna?:)

they’d say they need good intrastructure, 5 star hotels, nice place to chill out

idhella irundha dhaan varuvenpaanga…

if it had been in villages we wud not be discussing this…

Trickle effect true - I also apologize for not thinking a little deeper.

Before IT…where was the trickle effect? Was there any….that we didn’t notice? I am clueless.!

About Politicians influence on IT - I can tell you it is not 100% true. Case in point - My friend who wanted to start his software company in Export processing zone..He told me horror stories.

Premji/NarayanaMurthy won’t have the guts to talk about all their problems with politics that freely I guess.!

=======================
Prabhu - So, what do our History books say now? When I was young I read ‘ India is an agricultural country’.

You said Services - How is that sector doing? Has is reached the villages yet.!

“But the IT is definitely fueling the growth of other industires.pharmacheutical and automobile industries now and doing good because of the growth driven by the IT industries”

like how?i am just curious i want to know more.

infosys is building its own hotel for its own employees and guests

“The money i said is being channelised into various profit oriented industires.”

am not sure. if that is the case then i wud not be blogging abt this at all…

u take the cash reserves of all these big IT companies and find out how much they have invested in other industries…
only TCS had some inclination to invest its proceed from its IPO to other of its engineering industries..

adhvum therila…

but the rest?

But narayan sir i disagree.IT is growing at this rate because of less interference from the politicians. you dont have to go and see a minister to get a project in USA.For a IT compnay to be succesfull you dont need a politician. And most of the accounting is transparent.So no the money is not going to swiss banks.The money i said is being chanalised into various profit oriented industires.Can’t do anthing about that , that is captalism.

But yes the gap is dangerously widening and that’s why we have to develop a strong rural based economy.And we have to invest heavily in social development of the rural areas.

exactly..

ippo chozha naadu kallu dhaan udaikudhu. cultivable fields are gradually becoming plots for sale.