Your Excellency; Governor of Karnataka

Hon'ble Chief Minister

Hon'ble Deputy Chief Minister

Dr Narayana Murthi,

Dr Nilekani,

Ladies and Gentlemen,

I am extremely delighted to be here today and no words can describe the feeling of elation and pride I have in being with you in this wonderful campus of yours. When I presented the first Union Budget in 1991 I quoted Victor Hugo "no power on earth can stop an idea whose time has come". I had suggested through our Parliament that emergence of India as a major global power was one such idea. I had said that future would make it happen. I am happy to see that future is here today. I have been an ardent admirer of the outstanding work being done at Infosys under the inspiring leadership of both Dr Narayana Murthy and Dr Nandan Nilekani. They are truly a role model for India tomorrow. As Dr. Narayana Murthi mentioned, the problems of poverty, unemployment, etc. can be resolved through creation of wealth. What has been taking place here through the application of Infosys is creed, as contributed to the creation of wealth and development. I salute all those associated with Infosys. Dr Narayana Murthi has become a national icon, a global brand name, a source of tremendous inspiration for young entrepreneurs and a role model for CEOs worldwide. You must all be truly proud to be working under the leadership of such inspiring men. Infosys has set a new benchmark in entrepreneurship, in corporate governance, in intellectual productivity and has lived up to the Gandhian notion of `simple living and high thinking.'

Before I proceed with the rest of my speech, I would first like to commend the role played by our IT industry and our IT professionals in bringing India on to the world map and being counted as one of the knowledge powers of the world. This is not an achievement which came about overnight. This is the result of years of investment, enterprise and hard work - by individuals, by academic institutions, by enterprises such as Infosys and to some extent, by the Government. And I recall with immense gratitude to India's first Prime Minister Pt. Jawaharlal Nehru for having created many many temples of learning and enterprises. If Pt. Jawaharlal Nehru had been present today, he would have been mightily pleased to see what I have seen before my eyes today. When I took over as the Union Finance Minister, the country was passing through the most acute financial crisis ever in its history and there was a worry about the economic prospects of India. Just a decade later, it was heartening to see that outsourcing of jobs to India was one of the hottest topics in the US election debates. The rise of India as an economic power, particularly as an IT power, figures today in the discourse of all seminars, conferences and writings all over the world. Whereas the economic development of India has been multifaceted, the role of IT in breaking traditional mindsets about India's capabilities, our ability to make world-class products and to compete on an equal footing, is truly remarkable and it is probably the single biggest reason for India today occupying so much "Mind Space" among the investment community in the world. I salute the entire IT community for its massive and magnificent contribution to the success of India in this regard.

I am particularly pleased to be here in this historic city of Mysore to inaugurate the Infosys Leadership Institute, because "leadership" is what Infosys has been all about. One cannot but be moved and inspired by the story of Infosys. It is not just a classic "rags to riches" story of a company that grew from $250 million to $12.5 billion.

The media has of course celebrated that aspect of wealth creation by Infosys. What truly inspires me is the manner in which a group of educated and talented young men have been able to convert ideas into products, jobs and incomes for so many our countrymen and countrywomen. In so doing, they have given hope to a new generation and placed India on the world map.

Infosys also symbolizes the new phase of confident globalisation of Indian enterprise. When we launched economic liberalization in 1991 there were many skeptics who wondered whether the opening up of the economy would not result in de-industrialisation and the so-called return of the "East India Company". We have proved the prophets of gloom wrong.

The experience of the past decade and a half shows that Indian enterprise has risen to the challenge and proved that it is indeed globally competitive. Our share of world exports has gone up, not down. If services exports are properly accounted for, it can be shown that in the past decade our export performance has been even more remarkable.

Today, there are many other enterprises like Infosys that have been able to retain talent in India so that we Indians can live here and yet be part of the global economy. In the past, talented Indians had to migrate to the developed West in search of challenges commensurate with their skills and training. After 1991, we have succeeded, I believe, in creating at home an environment conducive to the realization of the potential of such talented Indians. It is interesting to see that the word 'Brain Drain' now often refers to people from the West coming to India in search of careers.

But, I must point out that a country as large as ours cannot make do with just a few enterprises such as Infosys. We need scores of such centers of excellence all over the country. I commit our Government to creating a conducive environment at home that will enable more and more talented Indians to create many more enterprises which will dominate the global stage with their skills, talents and products.

Ladies and Gentlemen,

India has to be more economically engaged with the world. We must equip ourselves better to deal with the challenges of globalisation and take advantage of its enormous opportunities. We should work for an India that is more closely integrated with its wider neighbourhood; an India that is an active participant in a new Asian Economic Community; an India that is more open to the free flow of goods and services and can export goods and services competitively to all corners of the globe. Ours has been a trading nation since the dawn of civilization. The people of this country have traveled far and wide for thousands of years as teachers and traders. India must be so engaged with the world once again.

This increased participation in the world economy, I sincerely believe, offers new opportunities. It also poses new challenges. Our Government will invest in the creation of capabilities that enable our people to make use of the emerging opportunities. Equally important, our Government will invest in protecting such people who may not be equipped to deal with the challenges of globalisation. Globalisation has to be a positive sum game and not a zero-sum game. If there are any losers, it will be our obligation to provide safety nets that will enable them to deal with the challenge.

I therefore believe the twin responsibilities of Government are, on the one hand, to create an environment conducive to the flowering of enterprise and individual creativity; and, on the other hand, to take care of those who are marginalized by the development processes and empower them with capabilities that enable them to become productive citizens of our great country.

Governments are also required to regulate business activity, but in an ideal world such regulation must, as far as possible, be self-regulation. This is where corporate responsibility assumes such great importance. If each and every stake-holder in society functions within the boundaries of law and decency and if we adhere to the rules and regulations of a modern, market-driven economy, then Government will have no reason to intervene, regulate or control economic and social life. Once there is such intervention, there is always the risk of its misuse. Infosys has set an example of corporate governance and corporate social responsibility which is a role model for its peers. I commend Narayana Murthi and all his colleagues for this great achievement.

Ladies and Gentlemen,

I am not surprised by the number of awards that Infosys has received for good governance and for its corporate management practices. Your voluntary adherence to global best practice disclosure norms and to financial transparency is model behaviour that other Indian firms must imitate.

Ladies and Gentlemen,

I hope the Infosys Leadership Institute will be able to help other enterprises follow the path set by you and create the human capabilities required for us to face the challenge of globalisation. India has more than 250 Universities, and many more R&D units, and engineering colleges. We have the world's largest chain of publicly funded R&D institutions. On an average, more than 3,50,000 engineers and 5,000 Ph.D. scholars graduate from our Universities and Colleges every year.

With such a vast pool of qualified, English-speaking scientific and technological manpower, India must have the ambition to become a large base of research and development activity. We should be able to attract global investment into R&D activity at home. I do think we should put in place the required legal and physical infrastructure that can attract more foreign investment in R&D activity in India. I also propose to establish a Knowledge Commission in the next few weeks; a Commission headed by a dynamic individual and staffed by committed youngsters, to exploit the latent potential of our knowledge network and leverage it to make India truly the 'Knowledge Engine' of the world. We will aim to be the natural choice for all knowledge based activity - a role India has been known to play for centuries.

Ladies and Gentlemen,

It is our endeavour to make India a major player in IT and IT enabled services. Apart from being leaders in software, we must also invest in hardware. Our Government is giving a major thrust to the convergence of technologies, to broadband connectivity, next generation communications and to e-enabling government at all levels. We are equally committed to bridging the digital divide and to developing content and connectivity for our vast rural areas. This requires commitment of both financial and intellectual resources to relevant software applications and to development of local content in Indian languages. I sincerely hope Infosys takes the initiative in this regard too.

Ladies and Gentlemen,

The service sector has been the most dynamic sector of the Indian economy. Not only has it been growing much faster than the other sectors, but it has enabled the Indian economy to be less dependent on the vagaries of the monsoon. It has also been one of the most important contributors to the growth of our trade. The sector has received far less attention than the manufacturing sector in the past for all round development, we need to ensure that enough employment opportunities are created outside agriculture, so that the employment profile of our country shifts away from agriculture. This requires a much faster growth of the services sector, not only domestically, but also in trade. Our Government is committed to creating an environment which facilitates the rapid growth of the service sector. I recognize that this would require the establishment of adequate human resources capabilities, appropriate certification and standard-setting institutions, removal of infrastructural and organizational bottlenecks and creating a global awareness of India as a service brand. I assure you that our Government will make every effort to ensure that not only will this happen but will happen in a manner that all regions of the country benefit from an explosion in services.

I am of course fully aware that to sustain this process we need urban renewal; we need better infrastructure. Yesterday, in Bangalore, I was apprised of the steps being taken to build a new international airport and modernize Bangalore's infrastructure. Our Government is committed to a new beginning for Bangalore and to creating the infrastructure required to meet the needs and aspirations of one of our most dynamic cities. Bangalore has already become a globally recognized brand name. The steady flow of world leaders and global captains of business to this city, thanks to firms like Infosys, has already established the international pre-eminence of Bangalore as India's knowledge capital.

Bangalore's emergence as a hub of enterprise and intellectual creativity predates its growth into the major metropolis. The city's infrastructure has therefore lagged behind its development. The time has come for Bangalore's infrastructure to catch up. The Bangalore "Brand" needs an infusion of new equity and I am personally committed to this cause. I hope this institute will do for Mysore what you have all been able to do for Bangalore.

I am fully aware that many of you have become impatient with the pace of development of our urban infrastructure. I understand your impatience. India needs world class infrastructure. For too long have we remained satisfied with the second best. Our "Make-do" attitude must give way to a new "Can-do" spirit. Bangalore has demonstrated to the country and the world that India "Can Do It". That Indians "Can Do It". I promise you, our Government will now show that we all, working together "Can Do It", what you expect of us. We can and we will create world class infrastructure.

Here too we need, of course, leadership. I hope the Infosys Leadership Institute will show us the way forward. I eagerly look forward to your creative endeavours. You are engaged in a most noble creative adventure. If the 21st century is to belong to India, we need more enterprises and entrepreneurs committed to the twin goals of growth and equity. Infosys embodies the best values that are required for this noble endeavour. May your path be blessed. I wish you all the best.