Would Pick Silicon Valley or India for a Start-Up: Cisco's John Chambers

"If I were to do a start-up now, I would probably do it in Silicon Valley or in India. I think the world wants to bet on India. We have seen start-ups in India really to start to regenerate in the last year and a half." These were the words of John Chambers, executive chairman of global networking equipment maker Cisco, at a panel discussion in Davos. (Watch Video)

Mr Chambers was participating in a debate at World Economic Forum annual meeting in the Swiss Alpine resort - on how India can be e a global resource for innovation, growth and talent in an era of digitisation. Arun Jaitley, Union Minister for Finance and Information & Broadcasting; Sunil Mittal, chairman of Bharti Enterprises, and Nouriel Roubini, Economics Professor at New York University, also took part in the discussion.

Mr Chambers' bullishness comes in the wake of the government's recent initiative to promote start-ups in the country. Prime Minister Narendra Modi earlier this month launched a number of initiatives to support the country's start-ups, including a Rs 10,000 crore fund and a string of tax breaks for both the companies and their investors.

The Cisco top executive, however, has a word of caution. "In 2005, we (India) did not articulate a good vision of how we are going to move forward. Many in the venture capital world went to India saying that this is going to be the next generation start-ups. But they did not do very well."

What has to be done differently this time? "You have to articulate the vision from the top. The political parties do have to come together. You also have to re-skill the workforce."

Mr Chambers also emphasised on the need for laying the foundations for building a digital country. "When you build out the broadband infrastructure for a digital country, you have a whole new generation of start-ups just like the internet revolution of the nineties. If you put in place a true broadband infrastructure for 1.3 billion people and make it inclusive, start-ups will occur in every segment of the industry."

"I think the pieces are there. The country has just has to put the puzzle together."

As regards Cisco, Mr Chambers said the networking company has already bet $100 million on start-ups in India, and "probably in my next trip to India, may bet another $100 million".

"We have $50 billion overseas that is not getting invested."

Echoing Mr Chambers' views on the India story, Sunil Mittal, chairman of Bharti Enterprises, said "the fourth industrial revolution (digital transformation) naturally belongs to India".

India is at a "sweet spot", Mr Mittal said.