In this interview with MEDICA-tradefair.com, Murali Nair talks about the possibilities the Indian marketplace offers technology companies, explains how even smaller companies can use this to their advantage and describes why Indian technology can definitely have the edge over Western high-tech industries.
Mr. Nair, how would you characterize the economic relationships between Germany and India?
Murali Nair: India offers companies from Western countries – not just Germany- high levels of innovative capacity. Several leading companies such as BOSCH or Siemens have recognized this early. Originally – decades ago – they came to India because of its big market. Later on, they realized that India is also a great place to develop products and services, especially in the technology and software sector. At this point, both companies employ approximately 30,000 associates there. That being said, there is also great potential for SMEs in India.
What type of potential is this exactly?
Nair: Companies must not just view India as a market, but should also consider it a research and development center for products needed in emerging nations. GE has developed an ECG monitor in India for the Indian market, which only costs about one-fifth of other GE devices for example. Having said that, seen in relation to price, it delivers high performance. Ultimately, this device, which was intended for use in India was also sought after by other countries, even the U.S. German companies still underutilize this kind of frugal innovation.
Why is this potential still unused in your opinion?
Nair: On the one hand, SMEs do not have enough experience when it comes to India. On the other hand, they have far fewer resources than big companies to manage the situation and organization in India. An emerging market like India lacks many structures and institutions, making it impossible to simply transfer business models from Germany or open a research and development center. It is definitely easier to take this step with local partners and local employees. This ensures you will know how the different local cultures interact. IBM, for example, has really embraced this aspect: more than 30 percent of its employees are Indians or live in India. Having said that, unlike German companies, American businesses are also more prepared to take risks.
Why should companies develop products in India of all places?
Nair: The country has a large number of workers in technical professions. Each year, 1.5 million engineers are added to the mix. Although they are not always as skilled as German engineers, India still offers plenty of competent and digitally savvy people. Companies can quickly find specialists, especially in cities like Bangalore that take a very big lead in the IT sector.