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The Bay Area Council Economic Institute wishes to thank the sponsors of this report, whose support was critical to its production: The Economic Institute also wishes to acknowledge the valuable project support provided in India by: The Bay Area Council Economic Institute wishes to thank the sponsors of this report, whose support was critical to its production: The Economic Institute also wishes to acknowledge the valuable project support provided in India by: Global Reach Emerging Ties Between the San Francisco Bay Area and India A Bay Area Council Economic Institute Report by R. Sean Randolph President & CEO Bay Area Council Economic Institute and Niels Erich Global Business/Transportation Consulting November 2009 Bay Area Council Economic Institute 201 California Street, Suite 1450 San Francisco, CA 94111 (415) 981-7117 (415) 981-6408 Fax [email protected] www.bayareaeconomy.org Rangoli Designs Note The geometric drawings used in the pages of this report, as decorations at the beginnings of paragraphs and repeated in side panels, are grayscale examples of rangoli, an Indian folk art. Traditional rangoli designs are often created on the ground in front of the entrances to homes, using finely ground powders in vivid colors. This ancient art form is believed to have originated from the Indian state of Maharashtra, and it is known by different names, such as kolam or aripana, in other states. Rangoli designs are considered to be symbols of good luck and welcome, and are created, usually by women, for special occasions such as festivals (espe- cially Diwali), marriages, and birth ceremonies. Cover Note The cover photo collage depicts the view through a “doorway” defined by the section of a carved doorframe from a Hindu temple that appears on the left. The carved basalt doorframe section, which is now part of the Avery Brundage Collection at the Asian Art Museum of San Francisco, originally came from Karnataka state in India and is dated circa 950–1050. The figures at the bottom of the doorframe, resting on the floor, include a door guardian (second from the left) and a Ganges River goddess (fourth from the left). (Temple doorways were commonly flanked by a pair of river goddesses.) Collaged on the “floor” in front of the doorway is a rangoli design, created using colored powders and typi- cal of a rangoli that would be drawn on the floor at the entrance to a home during festival time or to symbolize good luck and welcome for a special occasion. Preface Relations between the San Francisco Bay Area and India are longstanding and multi-faceted, dating back to the beginning of the 20th century, and represent a valuable contribution to the Bay Area regional economy in terms of trade, investment, technological innovation, jobs and wealth creation. This report follows Ties That Bind, a 2006 report by the Bay Area Council Economic Institute (formerly the Bay Area Economic Forum) on the Bay Area’s economic and other ties with greater China, and completes a two volume series on the demographic, cultural, educational, trade, investment and other ties between the Bay Area—the world’s technology capital and one of its most globalized economies—with China and India, the world’s fastest growing major economies. In assessing the region’s economic, academic and cultural ties to India, our intent is to highlight the Bay Area’s outward-looking business focus; its extensive links to global markets; the vibrant international communities that comprise a unique economic asset in the region’s development; and the concrete policy steps necessary to preserve and enhance that asset. Nearly 200 business, government, academic and community leaders in the Bay Area and India were interviewed for this report, representing a high-level cross-section of individuals and organizations that are shaping both business and policy. It has not been possible to capture every company, organization or community leader with an active role or perspective on the relationship. The purpose of this study, however, is to paint a picture of the changing dynamic that defines the relationship between the Bay Area and India, and is exerting a growing influence on the shape of the world economy. While focused on the Bay Area, the report also provides a deep case study of the changing fabric of the global economy, the interconnection of developed economies such as the U.S. with rapidly emerging economies such as China and India, and the process by which technologies and services are increasingly being generated through complex global partnerships. The report begins with a snapshot of India’s economic landscape, to provide context. It then offers a profile of the evolving Indian community in the Bay Area; the two-way exchanges of students, scholars, travelers and workers; trade and investment trends; and an in-depth examination of key industry sectors where the cross-fertilization of knowledge, talent and capital have added particular value. Readers can review the full text for an in-depth panorama of India’s economy and its ties to the Bay Area, or can move directly to the topics or business sectors that interest them most. We conclude with a set of findings that identify key economic exchanges and benefits growing out of the relationship for the Bay Area and for India; future opportunities for mutually beneficial cross-border collaboration and innovation; and broad policy steps for decision-makers to consider that will both nurture the relationship and ensure the Bay Area’s competitive position in the global economy. Acknowledgements This report was co-authored by Dr. Sean Randolph, President and CEO of the Bay Area Council Economic Institute, who managed its development, led the field research in India, and produced its final draft, and San Francisco-based international business consultant Niels Erich, who was the principal researcher and developed the baseline draft. Copyediting and layout were performed by Pam Winter. Original research for this report included interviews and correspondence with experts in the Bay Area and India whose personal experiences as executives, entrepreneurs, investors, university researchers, representatives of government agencies and trade associations, and community leaders helped provide a richer, nuanced understanding of the Bay Area-India relationship. Anupam Yog of Mirabilis Advisory, a business consulting firm based in New Delhi, guided our work in India, providing critical support and introductions to government, business, university, and media leaders and organizations. Our analysis was reviewed by a panel of leading business and university economists, whose com- ments and insights made an important contribution to this effort: Dr. Ashok Bardan UC Berkeley Dr. Rafiq Dossani Stanford University Dr. Martin Kenny UC Davis Dr. Cynthia Kroll UC Berkeley Navi Radjou Cambridge University Dr. Nirvikar Singh UC Santa Cruz Contents Executive Summary............................................................................................................ 1 Findings...................................................................................................................... 11 1. Country Briefing: India ...................................................................................................... 15 2. A Distant Dream: Indian Immigrants Arrive in California.................................................. 23 3. A Diverse, Vibrant Community ......................................................................................... 27 TiE Re-Examines its Mission ..................................................................................... 33 Bay Area Cities Have “Sisters” in India...................................................................... 47 4. Indian Students: Innovation and Quality of Life Are Still a Draw...................................... 51 UC Berkeley and IIT-Kharagpur: In Search of Synergy............................................. 59 5. Two-Way Trade: Slow but Steady.................................................................................... 67 Find a Need and Fill It................................................................................................ 71 Today Almonds, Tomorrow Pistachios ...................................................................... 73 Levi Strauss: Evolution of an Indian Brand................................................................ 76 6. Cross-Border Exchanges Flourish ................................................................................... 81 A: Banking/Financial Services................................................................................... 83 B: Legal Services ...................................................................................................... 90 Dabhol: The Mother of All Cases.......................................................................... 97 C: Semiconductors .................................................................................................. 102 D: Software/IT Services/Business Process Outsourcing .......................................... 114 To H-1B or Not to H-1B ...................................................................................... 124 Salesforce.com: Build it Yourself........................................................................ 139 $150 Million to $2 Billion in Six Years: Vivek Paul Takes Wipro for a Spin........ 147 HCL Technologies: India’s Homegrown Hewlett-Packard Diversifies ................ 150 E: Architecture/Urban Planning/Infrastructure

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