The Hindu : Infosys decision a shot in the arm for Govt.

Online edition of India's National Newspaper
Sunday, Jan 12, 2003

Southern States

Southern States - Kerala-Thiruvananthapuram

Infosys decision a shot in the arm for Govt.

By Girish Menon

THIRUVANANTHAPURAM Jan. 11. The decision of the IT software major, Infosys Technologies, to invest in Kerala has come as a shot in the arm for the Antony Government.

The Infosys decision would help the State Government make a major breakthrough in Information Technology and to a large extent help it retrieve its prime position as the leader in electronics and software development, a position it lost some time during the late 1990s as a result of political and administrative dithering.

There is another reason why the Infosys decision means a lot for Kerala and the current excitement it has generated in the State's political and administrative set up. This is the first time in decades that a large business house would be considering investing in Kerala since the Birlas and Tatas in the 1950s and 1960s.

Most of the large business houses have bypassed the State, despite its envious record in social sectors.

Why, even leading companies owned by Keralites migrated from the State because they felt unwanted by the political leadership, caught as it was in the midst of the coalition politics. With the Infosys decision, the UDF would get an outside change to break the spell that had been cast on the industrial progress.

Mr. Antony capitalised on the chance he got to highlight the point that Kerala was a peaceful State. To drive home a point, he pointed to Technopark, the State's leading electronics and software park, had not witnessed a day's stoppage owing to strike.

The UDF Government has been taking pains to change the universal perception of Kerala through a series of high voltage propaganda and road shows all over the country and several rich countries where Non-Resident Keralites have made their day. Some of the road shows have been grand successes, while a few of them nightmare of sorts. But where ever the road shows went, be it under the leadership of the Industry Minister, P. K. Kunhalikutty, or other Government officials, it could not help noticing the prosperity of the Keralite community and the nostalgia they shared for their native State.

But all of them had severe doubts whether they should sink their hard earned money in a State, which had earned notoriety for its incorrigible trade unions. If the State officials are to be believed, they had to sweat it out to convince them that the State had vastly changed since they left home in search of fortune.

The Infosys decision would go a long way in helping the doubting Thomas' make up their mind about investing in the State.

There is yet another significance in the Kerala team's visit to Bangalore, headed by the Chief Minister, A. K. Antony. This is the first time in his political career that Mr. Antony is going to a business house to seek favours. And the Chief Minister did not hesitate to mention this while addressing a press conference in Bangalore soon after the Infosys presentation.

He also stated with considerable amount of clarity the changes that have occurred in his own perceptions about growth and development.

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