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INDIA
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CURRENT
ISSUE NOVEMBER 25, 2002
BUSINESS: BILL GATES' VISIT
Gates-Way To India
The Microsoft chief mixed philanthropy and business
with practised ease. His $500 million commitment will generate both goodwill
and market.
By Shefalee Vasudev
and Vivek Law
Among the most valuable assets of Bill Gates, the
world's richest man, is his serene smile. It helps the chairman of Microsoft
in his transition from a hard-nosed businessman to a man who wants to
save the world from diseases. On his third trip to India, where one minute
he was promising $100 million (Rs 480 crore) to fight aids and the other
committing $400 million over three years to boost Microsoft's fortunes
in India, the smile was always visible.
There's a reason for this complacency. Back in the US Gates may face
anti-trust suits and even have the odd cream pie flung in his face by
protestors, but in India he gets treated like a head of state. As Gates
shuttled from one city to another in his sleek silvery Bombardier Global
Express 7748 jet, chief ministers and corporate honchos left no stone
unturned to court his attention. And he theirs. For this four-day visit
was not all about what Gates can give India, but also about what India
can give Microsoft.
The visit began amidst controversy. Union Health Minister Shatrughan
Sinha, a former film star, objected to a recent US National Intelligence
Council (NIC) report projecting HIV-positive cases in India at 25 million
by 2010. Gates deftly relegated the issue to the back pages of newspapers
by saying his foundation had nothing to do with the study. A visibly elated
Sinha was made chairperson of the India aids Initiative. And the controversy
ended, for now at least.
$100 million for aids
control
$300 million for it sector
$100 million for India
unit
FRIENDS ALL: Gates with Kalam (top);
and (from left) Sinha; Infosys chief N.R. Narayana Murthy; Andhra
Chief Minister Chandrababu Naidu
Gates then got down to nibbling his favourite-the good old samosa. And
he did not mind the security blanket-he is quite used to it. In Delhi,
he announced the aids grant would focus on two areas: the high-risk mobile
population and for communication and advocacy. "We will ensure that
our resources go to organisations with credible track records," said
Gates when asked by India Today whether the foundation can sift genuine
aids-campaigns from the murkier ones.
WINDOWS TO GATES: Maharashtra Chief Minister
V. Deshmukh does the honours
But questions remain. "It remains to be seen whether the $100 million
will go to the same high-profile NGOs or to newer ones as well,"
says Dr Chinkholal Thangsing, director, Action India, a Delhi-based NGO.
Quite in the same vein, Sandhya Bhalla, Programme Director at CII's Indian
Business Trust for HIV-AIDS, says, "Nobody doubts the managerial
skills of the foundation, but we hope all stakeholders are involved in
fund distribution." There are also fears that the disbursement of
funds will get entangled in red tape given the Government's involvement
in the project. But Joe Cerrell, public affairs director, Gates Foundation,
is quick to the defence: "We have researched the Government's strategy
and have worked out how we can fill the gaps." Also, Gates expects
aids Initiative director Ashok Alexander to keep tabs.
HOW HE WOOED INDIA
PR: Walked the red carpet with the President,
Prime Minister A.B. Vajpayee and chief ministers with ease.
LINK UPS: Hobnobbed with top corporate honchos
like Mukesh Ambani, praised software engineers and signed BPO deal
with Wipro.
LARGESSE: Inks portal deal with Karnataka Chief
Minister S.M. Krishna, $20 million for Shiksha project.
Controversy apart, the welcome extended to Gates spoke volumes. From
meeting the President and prime minister to talking to HIV-infected people,
Gates looked every bit a man who knew what he wanted. When Gates walked
down the Mughal Gardens with A.P.J. Abdul Kalam, the tycoon in a dark
suit and the rocket scientist in a light mood, they added a breath of
mutual respect to the crisp November day. In contrast, the reception Sinha
hosted for Gates that evening at a five-star hotel was lukewarm. Sinha,
minus the aids red ribbon, was as bombastic as ever: "We admire you
for your looks, but we admire you more for your deeds," he told Gates,
who just smiled.
Philanthropy over, Gates got down to doing what he does best. Over the
next three days in Mumbai, Bangalore and Hyderabad he made it clear that
he meant business. Microsoft's proposed investments of $400 million will
eventually mean more business for Microsoft.
India is a market with huge potential and Microsoft can ill-afford to
allow any other software, Linux for instance, to make inroads. Gates,
therefore, is keen on tie-ups with state governments and Indian companies
to ensure their projects use Microsoft software, and sell hundreds of
thousands of "Tablet PCs" to Indians. Critics of Microsoft even
posted cynical messages on websites saying that Gates' trip was all about
giving $100 million to help India fight aids and $400 million to fight
Linux.
In between planting saplings on the Infosys campus in Bangalore and
a straight-from-the-gut lecture to software engineers, he struck deals
with Wipro for business process outsourcing (BPO). He even went on to
say that the two companies could effectively take on IBM. These are big
statements coming from Gates which set the Wipro stock zooming. But as
of now, that's the only immediate effect of Gates' visit. The projects
announced will take years to bear fruit. And Gates will be back before
that. With more dollars and smiles.