It is true that VC investments are increasing in Indian BT, but there is a long way to go before the quantum becomes comparable to that in IT.
7. Lobbying Power:
The IT industry’s apex trade association, NASSCOM, is one of the most influential industry associations in India. NASSCOM has international recognition too given that as many as 150 of its 850 members are global companies from the US, EU, Japan and even China. The benefits that have accrued to the Indian IT industry through the proactiveness of NASSCOM are immense.
In contrast, till last year the Indian BT industry was lacking such a united front in its dealings with the Government, and it hurt. For a fledgling industry, and especially one that is both capital-intensive and regulations-intensive, government support and understanding are critical. Thankfully, the void has now been filled by ABLE, which itself is hoping to emulate NASSCOM in terms of effectiveness.
It is still early days for ABLE. The positive news is that the government is engaging it in its policy formation process. But it is going to take time, and a truly concerted industry effort, for ABLE to acquire the kind of lobbying firepower that NASSCOM enjoys. Until then, it’s advantage IT!
8. Public Acceptance:
IT has had a fairly uncontroversial run in India. The gains from IT have made a significant impact in the lives of millions of Indians. Consequently, the industry has never faced any problems in terms of public acceptance.
In the context of BT, controversies are never too far away. Farmer’s associations and NGOs have been extremely wary of the developments in agri-biotechnology. GM (genetically modified) seeds (e.g. Bt cotton) have witnessed violent reactions upon their commercial introduction. Monsanto and Mahyco (the developers of such seeds) have been much maligned by sections of the Indian community. In the context of bio-pharmaceuticals too, companies had had to face mistrust and suspicion. Well known companies like Shantha Biotechnics and Biocon have, at times, run afoul of the regulatory authorities.
