Will Reverse Migration From Silicon Valley Be Successful?

Will Reverse Migration From Silicon Valley Be Successful?

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Will Reverse Migration From Silicon Valley Be Successful?

Out of all directions, East is the best!


Go East Policy

Immigrant entrepreneurs are leaving Silicon Valley because of the strict migration policies of the Obama administration, the faltering US economy and most importantly better prospects at home. Harvard professors are telling ‘if it is happening, it is happening in India and China. Go East’. There is another saying ‘out of all directions, east is the best’. The West is saturated now. US economy is trying to limp back. European Union is mired in debt crisis with many nations like Portugal, Spain, Ireland, Greece and Italy in trouble. When these economies will recover is not known even to the economists. On the other hand, India and China are showing good growth even in these tough times. Therefore there is no surprise that the Silicon Valley entrepreneurs are encouraged to come back to India and start their ventures here for better returns.

Reverse Brain Drain

This is the first time in American history that a reverse brain drain is happening. All these years, we have only seen brain drain wherein talented Indians graduating from IIT and IIM fly to USA in search of greener pastures. But now these very same people find their home turn greener compared to the land of immigrants. Chinese entrepreneurs are also taking similar decision and returning to China. China’s growth is much more than India’s.

Does China Have A Culture After Cultural Revolution?

Family is also another motivation for the return of the Chinese and the Indians from the Silicon Valley. American dating culture is totally different from that of India’s (I do not know about Chinese culture under the communist rule. In the so called Cultural Revolution, Mao changed what was the Chinese culture into a no culture policy. Mao considered culture as a capitalist tool to chain the people to follow certain habits. He killed hundred million people during the Cultural Revolution of the sixties). Indian families having daughters and sons find it difficult to live in the American culture after the daughter has attained age. In USA, school girls getting pregnant are not an uncommon thing. In fact many schools even facilitate for such mothers to feed their babies even while studying at school. Similarly school children drinking or smoking is considered as a normal practice there. But in India, these things are viewed as serious and society cannot tolerate kids doing all these things.

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Will Reverse Migration From Silicon Valley Be Successful?


Dating Culture of America Is Not To the Liking of Indians

Even Indian couples having sons find this dating culture intolerable. So far many families had been tolerating this just for the purpose of enriching their purses. But now as they smell better opportunities at home, they are happy to return without any complaint. USA will be feeling their absence after some time. America is a land of immigrants. Indians and Chinese have been helping American society to live happily with all their requirements. Now it is very difficult to fill the vacuum left by these immigrants who were hard working, honest, intelligent and considered USA as their second homes. The Hispanics and the Mexicans cannot compensate for the loss of Chinese and the Indians. Indians and Chinese are very much attached to their families compared to the Americans.

There Can Be Many Amazons and Silicon Valleys in India

Indians and Chinese are sure that the time has come when USA has to import the latest technology from India and China. Therefore instead of migrating to USA and settling down there, it will be better to remain in their own countries and scout for opportunities for better economic returns. India and China have a huge domestic market to bank upon. It is not possible to create another Amazon or another Silicon Valley in USA. That is why the US economy is mainly based on oligopoly. India can hold several Amazons and several Silicon Valleys. Moreover the cost of establishing a business enterprise in India or China is ten times lower than that in USA.

Bribing Politicians Is the Greatest Headache in India

But there are also hard factors to contend with for the entrepreneurs from Silicon Valley returning home. In most of the places in the world, it takes just one day to start a company. But in India it can take several months or even years at times. One has to get permission from the Central, State and the local municipal authorities for various things ranging from environment to raw material procurement. One has to pay bribery to many officials and politicians for even normal operations. After that one has to pay bribes to officials who come for inspection time and again. Then the right connections have to be secured. Lobbying one’s cause is important in India and China compared to Silicon Valley. In Silicon Valley, you need to concentrate only on business and technology. Other things will be taken care of by the system.

Low Cost Advantage Is Disappearing

But the advantage of low cost is fast disappearing in India and China. Real estate cost is skyrocketing. Inflation is in double digits. Price of all commodities is rising. Wages to workers are rising manifold. If you add all these things to the bribery expenses also, then the difference between the cost in USA and India is greatly reduced. It is also difficult to find right people with right skills for the right jobs in India and China. Only 25% of the engineering graduates in India are employable and others are a waste. In Silicon Valley, one can easily find the right talent but should be prepared to pay more. More than one lakh foreign settled Chinese returned to China in 2009.

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