Press Releases 2004

Information and Communication Technology

February 2, 2004

Op-ed by Ambassador David A. Gross, United States International Coordinator for Information and Communications Policy
Financial Express, February 2, 2004.

The expanding opportunities afforded by information and communications technology (ICT) exert a magnetic force pulling the Indian and U.S. economies ever closer into an increasingly interdependent relationship. It is incumbent upon both sides to see that this relationship, which has clearly had its mutual benefits, is successfully promoted both by the private and public sectors in each country.

The fourth annual "Supercomm India", held this week in Delhi, is an impressive and important display of the cooperative spirit between our countries regarding the critical role that information and communications technology plays in economic advancement and social advancement. At this important meeting of industry and government officials, an extraordinarily large and diverse group of U.S. and Indian firms will seek to deepen their already substantial collaboration and attempt to forge new directions in worldwide economic development.

It is important to the United States and to the rest of the world that India's economy is so dynamic. Aggregate gross domestic product growth during the 1970s was a mere 3.5% -- barely sufficient to keep up with India's population growth. By the 1990s, however, India's growth was more than 5.5%. Now, with its new market dynamic, the Indian economy is expected to grow at even higher rates during the next decade. In the telecoms sector, India boasts the fifth largest network in the world and the second largest, after China, among emerging economies. Annual growth rates in India for "fixed" telephone line users is more than 22% while mobile and Internet usage is growing at over 100%. In fact, because of India's commitment to free markets and progressive regulatory approaches, nearly 75 million new telephone connections are expected to be installed by 2005 alone, ballooning to 175 million more by the end of the decade.

Of course, there remains much work to be done if India's economic growth is to continue. In the information and communications technology sector, India's leadership role is beyond dispute, but as many in the U.S. can tell you from direct experience: past performance is not necessarily indicative of future results. The liberalization that India launched in the past decade in this sector and some other key industrial sectors must and should continue if India wants to maintain its status as a major global economic player. Yet there is a sense in some quarters that India may lose out to certain other countries moving in a similar direction. India must pursue deeper reform or risk missing important economic opportunities that will bring additional growth and development.

As we move into a new interdependent global economic climate, marked in particular by the ubiquity of the Internet and other new and exciting ways of communicating, it will be important to stay the course of openness and transparency. India has taken impressive steps in this direction. At the World Summit on the Information Society (WSIS) late last year in Geneva, India's Communication Minister Arun Shourie reaffirmed his country's full support for a linked global marketplace in ideas. The constructive role played by the Indian government was a critical factor in forging a global consensus that recognizes that information and communication technologies are a key element of political progress, economic growth and social development. We were pleased to join in the adoption of the WSIS Declaration of Principles which emphasizes our shared core principles of open, free markets and reaffirms a global commitment to democracy, human rights and the rule of law. I certainly share Minister Shourie's emphasis on strong and continuing support for the ICT sector and on the importance of developing closer worldwide economic and commercial links.

This support, however, is conditioned on the proper economic "backhaul," meaning the right fundamental policies at home to support the sustained advancement of technology. This includes, among other things, a robust climate for foreign investment with a flexible and open regulatory environment conducive to doing business. A strong legal environment that, among other things, provides adequate protection for intellectual property (including for movies, software, and innovative new technologies) is also essential, because it promotes innovation and further product development. India has been rightly saluted for starting down this road, but a prosperous future requires that all countries demonstrate their commitment to staying the course.

Taking these steps will also confirm India's position as the test bed for the proposition that digital opportunities can be best achieved through the broad-based diffusion of technology throughout the society. India's phenomenal growth, particularly in some of the poorest regions, demonstrates the power and the potential of this new global economic paradigm. In the United States, we, too, are using the tools provided by the information age to help lift people out of poverty and despair toward a more promising future.

Every time I travel to India, I am struck by how much our two countries have in common. We are both thriving multi-cultural democracies. We share a common legal heritage - a way of ordering our business and social affairs in a manner that seeks to offer hope and justice for us and our children. At heart, we have extraordinarily similar values in many areas. And where it matters most -- our people -- we share a common bond: the Indian diaspora has played a vital role not only by creating some of the most important and exciting parts of the U.S. economy, but also by the important contributions that those who have lived in the United States have brought back with them when they returned to India -- including constructive business methods and connections from the United States that benefit their communities at home.

A strengthened economic partnership between the United States and India will provide a solid foundation for our work together. To accomplish this goal, ICT must play a vital role. However, to succeed, trade must be a two-way street. The answer to the economic challenges that we face together in today's globalized world is to open markets and to create jobs. This is because an open international trading system brings with it growth, innovation, new job opportunities for all and social advancement. Our success in this area can lead directly to the promise of a bright economic future -- the most enduring legacy we can leave for future generations.