Human capital is India's biggest advantage today, says David Hopper, US Consul General in Chennai. Growing at 8 per cent, India is one of the fastest growing economies in the world and US-India trade is at $26 billion and set to boom, he said.

With the growth in economy, US companies have substantially hiked investments to India. Hopper urged entrepreneurs to set up shops in the United States and said the consulate will open an office in Hyderabad to extend support to Indian companies willing to have shops in the US and vice versa.

With the bio-tech industry slated to hit $5 billion by 2010, bio-tech and bioinformatics are emerging as big opportunities which must be tapped.

However, he said bureaucratic hassles still exist and customs and excise procedures are still confusing. There have also been instances, he said, where Indian companies have not adhered to the contract terms with the US companies.

Talking about intellectual property rights issue, Hopper said Indian patent offices should gear up to face the growing challenge, be more equipped with HR and data processing facility.

In terms of visas, the demand is growing at 10% in Chennai, higher than the GDP of the country! Hopper assured the consulate will soon expand to meet the growing demand of people wanting to go to the US.

India experience

Hopper has been working as the Consul General in Chennai from 2005, hence has been able to see a lot of South India.

• Complete coverage: TiE-ISB Connect 2006

He came to India during 1977-79 as the Consul General  in Mumbai. He does not claim to be an expert on India but he got the opportunity to see how India existed 25 years ago and how it does now.

It has been a fantastic growth, he said. Even a small town like Hyderabad has grown dynamically as the hub of education, technology, culture and literature. It is now an exciting and interesting place to be in.

Business in India

Due to geo-political reason after the Cold War and reforms and liberlisation by various governments, the scope of business in India has boomed, Hopper said. Foreign investors are interested in the country's human capital, talent and resources.

India is very attractive. There has been a record foregn direct investment. But had India grown faster, the FDI would have grown further, the Consul General felt. There are infrastructural problems in terms of good roads, airports, ports which need to be addressed.

Opportunity in India

For the US, Indians' knowledge of English is a great advantage. There is a huge reserve of talent in the country, he said and hoped the process of liberalisation continued to make it easier for foreign investors to do business in India.

Hyderabad -- showcase of emerging India

It was great to see the hi-tech city where the infrastructure has developed much compared to many other cities, Hopper said. Hyderabad is indeed a showcase of emerging India. Foreign investors would be excited to come here.

Is the growing terrorism a cause for concern for US companies coming to India?

Security is one of the key factors of infrastructure or conditions that foreign investors, including the ones from the US, look for in a country apart from the resources and human capital.

American companies are not concerned about the security in India. Hopper felt US companies realise that India and US are partner with other countries to fight against terrorism. Indian government at the central and state levels is serious about combating terrorism.

American companies also realise that terrorism is not targeting the American, European or other multinational interests.

Do Indians lack in product innovation?

Indian companies are coming up with innovative products. Companies like Portalplayer are examples of this. They have done fantastic things in product development. There is a huge potential in India and companies like these attract more investors to India, the Consul General said.

Will India emerge as a superpower?

India will emerge as a superpower, said Hopper. It needs to go on developing its key resources and human capital. If it continues to do so, it will flourish -- something which "my country and government would support," Hopper signed off.

• Complete coverage: TiE-ISB Connect 2006