IndUS Business Journal

Indian-American man charged with insider trading

Apr 26, 2017 0

Washington– An Indian-American man has been charged with insider trading here by the Securities and Exchange Commission (SEC).

Avaneesh Krishnamoorthy, a Vice President in the risk management department of Nomura Securities, a New York-based investment bank, allegedly used the confidential information of a private equity firm’s acquisition to conduct insider trading, the American Bazaar online reported on Wednesday.

He was charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.

According to the SEC’s complaint, Krishnamoorthy made approximately $48,000 in illicit profits through insider trading.

Federal prosecutors said Krishnamoorthy learned through the course of his work that the private equity firm Golden Gate Capital intended to acquire the online analytics and marketing firm Neustar.

Krishnamoorthy then began trading in Neustar securities through two brokerages accounts that he allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction, according to the report.

“As alleged in our complaint, Krishnamoorthy was entrusted with confidential, market-moving information by his employer and he misused it for personal gain,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.

Krishnamoorthy was presented in Manhattan federal court before US Magistrate judge Kevin Nathaniel Fox on Tuesday.

Acting Manhattan US Attorney Joon Kim said Krishnamoorthy was charged with violating his duty to his company and trading on insider information.

“Avaneesh Krishnamoorthy allegedly exploited his access to information about a pending acquisition to purchase stock and options, making tens of thousands of dollars in illegal profit for himself,” she said.

This was the first criminal insider trading case filed by Kim, who in March succeeded Indian-American Preet Bharara, who was fired by new President Donald Trump as part of his administration reshuffling. (IANS)

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Government CIOs spending only 21 percent of IT budget on digital initiatives

Apr 26, 2017 0

Mumbai– Top-performing organisations in the private and public sectors globally are, on average, spending a greater proportion (33 per cent) of their IT budgets on digital initiatives than government CIOs, who are only spending 21 per cent, market research firm Gartner said on Wednesday.

According to the survey, looking forward to 2018, top organisations anticipate spending 43 per cent of their IT budgets on digitalisation, compared with 28 per cent for government CIOs.

“Government CIOs in 2017 have an urgent obligation to look beyond their own organisations and benchmark themselves against top-performing peers within the public sector and from other service industries,” said Rick Howard, Research Vice President at Gartner.

The survey included the views of 2,598 CIOs from 93 countries, representing $9.4 trillion in revenue or public sector budgets and $292 billion in IT spending, including 377 government CIOs in 38 countries.

Government CIOs as a group anticipate a 1.4 per cent average increase in their IT budgets, compared with an average 2.2 per cent increase across all industries.

Local government CIOs fare better, averaging 3.5 per cent growth, which is still more than one per cent less on average than IT budget growth among top-performing organisations overall (4.6 per cent), the findings showed.

The top three barriers that government CIOs report they must overcome to achieve their objectives are skills or resources (26 per cent), funding or budgets (19 per cent), and culture or structure of the organisation (12 per cent).

“Compared with CIOs in other industries, government CIOs tend not to partner with startups and midsize companies, missing out on new ideas, skills and technologies,” Howard stressed.

The government sector is vulnerable in the domain of data analytics (30 per cent), which includes information, analytics, data science and business intelligence. Security and risk is ranked second for government overall (23 per cent).

Overall, 58 per cent of government CIOs report that they participate in digital ecosystems, compared with 49 per cent across all industries.

Advanced analytics takes the top spot across all levels of government (79 per cent). Digital security remains a critical investment for all levels of government (57 per cent), particularly in defense and intelligence (74 per cent). (IANS)

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India can bolster Snapchat’s prospects as Facebook goes after it

Apr 26, 2017 0

By Nishant Arora

New Delhi–Founded in 2004, Facebook — on track to hit two billion active monthly users this year — is now the fifth-largest US firm by market capitalisation (exceeding $400 billion) and owns the world’s most popular apps: WhatsApp, Instagram and Messenger.

On the other hand, popular image messaging platform Snapchat’s parent company Snap Inc grew to $25 billion in market capitalisation after its mega IPO in March. Launched in 2011, Snapchat today has a little over 160 million active daily users.

That Facebook is going after Snapchat is not news, but the battle has now become somewhat ugly. At its recently-concluded F8 developer conference in San Jose in the US, CEO Mark Zuckerberg launched “Camera Effects Platform” to encourage augmented reality (AR) effects — a move reported by The New York Times as Facebook’s “brazen heist” over Snapchat.

It is Snapchat which has popularised animated AR selfie masks and facial filters.

Facebook has also added Snapchat-style “Stories” and camera special effects to all its core social apps: Facebook, Messenger, WhatsApp and Instagram.

Facebook has also added Geostickers to Instagram, offering location-specific tags in two cities (New York City and Jakarta) that users can paste over images. Snapchat launched Geofilters back in 2014.

Why does a giant need to “copy” or borrow features at all when it can innovate at will?

“Facebook is not just learning/borrowing features from Snapchat (mostly to Instagram), but it has been borrowing features from other messaging apps too. For example, Facebook Messenger learned a lot of features from WeChat (China) since last year’s F8, such as creating branded accounts and letting brands use it for customer services,” Xiaofeng Wang, Senior Analyst with US-based market research firm Forrester, told IANS.

The new group chatbot feature announced at F8 this year is also very similar to what “Line” (Japan) has already offered.

It’s not unusual in the tech industry to create similar features inspired by other companies. Line and WhatsApp picked up the idea of a voice messaging feature from WeChat too.

“Legally, it’s hard to prove ‘copy’. But Facebook has been launching new features to retain user-activity and attract younger generations as Snapchat attracts the younger generation better than Facebook,” Wang noted.

Originally launched by Snapchat, the “Stories” feature shows photos and videos shared in chronological order that disappear after 24 hours.

Facebook introduced something similar in its app Instagram last August. Today, Instagram has over 200 million people Stories daily — more than even Snapchat.

Today, Messenger, WhatsApp and the main Facebook app have all added “Stories” feature (In WhatsApp, it is called ‘Status’).

“Like other internet giants, Facebook leverages the power of the ecosystem, same as Tencent or Alibaba in China. It’s not the battle between Facebook and Snapchat, rather than ecosystem strategy vs a single-platform strategy,” Wang told IANS.

According to Anoop Mishra, one of the nation’s leading social media experts, most of the product-based companies involve their research and development team to keep a close eye specially on the features implemented by surrounding chasers.

“Features like Poke (2012), Slingshot (2014), Bolt (2014), One-Hour Messages (2015), News Feed-Only Posts (2016), Quick Updates (2016) and Instagram Stories (2016) are somehow imitated, snatched or neatly cloned in recent history by Facebook from Snapchat,” Mishra told IANS.

“This could be a part of their strategy to influence more and more active users and keep themselves ahead of the surrounding competitors which helps them gain internet ad revenue share as well,” Mishra added.

Unfortunately, the biggest irony with online e-services is that there is hardly anything from the offerings perspective to sustain differentiation.

“However, execution is what will matter in the end. In this case, if Snapchat has a better execution, it will grow big or else Facebook could make it irrelevant by looping in features on features,” Faisal Kawoosa, Principal Analyst (Telecoms) at CyberMedia Research (CMR), told IANS.

Is this open “dadagiri” on the part of Facebook or is everything fair in love and technology?

“I would like to call it a strategic ‘dadagiri’ rather than ‘open dadagiri’. Why I’m saying strategic ‘dadagiri’ is because these things not only help one gain market share but also prepare grounds for acquisition and mergers,” Mishra emphasised.

For Kawoosa, it is not about copying or “dadagiri” but what works best.

“Ultimately it’s about what makes the application more productive and meaningful, thus increasing the chances of keeping users engaged,” Kawoosa told IANS.

Zuckerberg even tried to acquire Snapchat for $3 billion in 2013, but its co-founder Evan Spiegel refused the offer. Now Spiegel is engaged in a different kind of battle with Facebook.

Spiegel, who was in the news recently for his purported disinterest in expanding business to “poor countries” like India — something that created an uproar in social media and was later refuted by the parent company Snap — must actually have a fresh look at India.

There are over 200 million WhatsApp users in India while Facebook has nearly 166 million.

Snapchat? A mere four million, according to media reports.

This is where Spiegel needs to focus as the Indian market is among the world’s largest — and growing — when it comes to social media use. Ignoring the “rich” millenials in the country will only harm Snapchat as Facebook will gobble them up. (IANS)

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US Supreme Court to hear case on citizenship revocation

Apr 26, 2017 0

By Ashok Easwaran

Chicago– The United States Supreme Court is to begin hearing oral arguments on April 26 in a case which could set a precedent in the revocation of American citizenship of naturalized citizens and is of paramount significance to thousands of Indian residents.

In Maslenjak v. United States, the Supreme Court will determine if an “immaterial false statement or omission in an immigration document or status proceeding” can lead to criminal prosecution and revocation of citizenship.

With more rigorous immigration enforcement under President Donald Trump, the case has caused consternation among many immigrant activists. As many as 70 organizations representing immigrants have filed an amicus brief about the case.

The Asian Americans Advancing Justice (AAAJ), which is among the organizations which filed the amicus brief, said in a statement, “The brief explained that many individuals may make minor errors in filling out immigration forms or providing information because of language barriers and lack of counsel and subjecting those individuals to criminal prosecution and loss of citizenship exacts a harsh and unfair penalty.”

“The naturalization process can be long and complicated and requires applicants to make hundreds of factual representations, in response to often ambiguous questions, about events spanning their entire lives.”

“If any trivial factual misstatement could violate the statutes at issue in this case, untold numbers of naturalized citizens would be at risk of losing their citizenship and liberty years after they have become full American citizens. Based on this case, someone accused of knowingly providing the wrong street number in an address (203 instead of 205), for example, could be subject to criminal proceedings and having their citizenship revoked – a worrying threat given the current administration’s wide-reaching enforcement and deportation activities,” the AAAJ statement said.

Maslenjak v. United States involves Divna Maslenjak, an ethnic Serbian woman and a native of Bosnia, who came to the United States in 2000 as a refugee in order to flee the civil war in the former Yugoslavia and was found to have made a misstatement during immigration proceedings.

The Supreme Court’s verdict in this case is considered important because it could provide guidance over whether naturalized American citizens can be stripped of their citizenship in a criminal proceeding based on an “immaterial false statement”.

What could have been a case dealing with procedural matters in less turbulent times, has gained importance because of the Trump administration’s enhanced focus on immigration enforcement. The New York Times has reported that officials of two organizations which take a hard line stance on immigration – the Center for Immigration Studies and the Federation for American Immigration Reform — have joined the US Immigration and Customs Enforcement agency, putting them in positions where they can carry out their agenda.

Moreover, with Trump’s appointment of Justice Neil Gorsuch to the US Supreme Court, the court now tilts to conservatism. Gorsuch, like the late Justice Antonin Scalia, whom he succeeded, is a proponent of originalism – a judge given to interpret the words of the US Constitution as they were understood at the time they were written in 1787.

In one of the most famous cases where the United States Supreme Court ordered the revocation of citizenship involved an Indian, in 1923, the court ruled that Bhagat Singh Thind, a founder member of the Ghadar party, was racially ineligible for US citizenship. The court based this decision on the American Nationality Act of 1906 which allowed only “free white men” and “aliens of African nativity” to become naturalized citizens.

In his defence, Thind did not challenge the constitutionality of the racial restrictions, but made an extensive argument that as he was a “high-caste Hindu” and an Aryan, he came under the category of “free white persons” within the meaning of the naturalization act. Indians from North India and most Europeans are Indo-European people, he said. Elaborating on his argument, Thind said that since Aryans were the conquerors of the indigenous people of India, they had greater similarity to ‘white people’.

Thind’s lawyers also argued that as a “high caste Hindu” he even had a revulsion to marrying an Indian woman of a “lower race.” Unfortunately for Thind, the court decided to rely on another case where it was held that “white people” were only those who were members of the Caucasian race. As a result of the court’s decision, the first Indian to become an American citizen, A.K. Mozumdar, also had his American citizenship revoked. (IANS)

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Wipro 2016-17 net declines 4.7 percent; projects flat revenue for Q1

Apr 25, 2017 0

Bengaluru– Global software major Wipro on Tuesday reported Rs 8,490 crore net profit for 2016-17, registering 4.7 per cent decline over the previous year (2015-16).

The company has projected a flat sequential revenue growth from IT services for the first quarter of 2017-18.

“Revenue from IT services will be in the range of $1,915-1,955 million for the first quarter (Q1) ending June 30,” it said in a statement here.

The city-based firm posted $1,955 million revenue from IT services for the fourth quarter of 2016-17, registering 3.9 per cent growth over last year and 2.7 per cent over last quarter.

Unlike rival Infosys, Wipro does not give revenue guidance for the fiscal.

Net profit for the fourth quarter was almost flat at Rs 2,260 crore, registering only one per cent growth over last year but up 6.9 per cent from Rs 2,115 crore in the third quarter.

The Board of Directors have recommended a bonus issue of 1:1. It also will consider a proposal for buyback of equity shares around July 2017. The interim dividend of Rs 2 per share declare in January has been made final.

Azim Premji was reappointed as company Chairman.

Under capital allocation, the Board of Directors has recommended adoption of the interim dividend of Rs 2 per share of Re 1 face value as the final dividend and total dividend for the fiscal 2016-17.

The interim dividend was recommended on January 25.

In a regulatory filing on the BSE earlier, the IT major said revenue for the fiscal under review grew 7.4 per cent over last year to Rs 55,040 crore.

Revenue from IT services grew 8.4 per cent to Rs 52,840 crore.

Under the International Financial Reporting Standards (IFRS), net income was $1.3 billion and revenue $8.5 billion.

Revenue from IT services grew 4.9 per cent over last year to $7,705 million. Operating margin from IT services was 18 per cent for the fiscal.

Gross revenue for the quarter (Q4) under review grew 2.6 per cent over last year to Rs 13,990 crore.

Revenue from IT services business grew 4.7 per cent over last year to Rs 13,400 crore for Q4.

Under the IFRS, net income was $349 million and gross income $2.2 billion for the same quarter.

Revenue from IT services under IFRS was $1,955 million, a growth of 3.9 per cent over last year and 2.7 per cent sequentially.

CEO and board member, Abidali Z. Neemuchwala said the company had delivered revenues within the guidance range in the fourth quarter.

“We are confident that the recovery in energy and utilities and our demonstrated strength in digital will help us improve our growth trajectory during the course of the current financial year,” he added.

Giving his views on Q4, Kotak Securities Ltd Senior Vice-President Dipen Shah (PCG Research) said Wipro results were a mixed bag, with revenues coming marginally higher and margins slightly lower against the expectations.

“The guidance of (-)2 per cent-0 per cent growth in the first quarter (Q1 of FY2018) is a negative surprise and is due to cancellation of projects in the healthcare business as well as structural challenges in retail vertical. This, once again, reflects the need for better account management at Wipro,” said Shah in a statement.

Neemuchwala however said: “We are confident that the recovery in Energy & Utilities and our strength in Digital will help us improve our growth trajectory in the new fiscal.”

The IT services division added 51 clients inQ4 as against 108 last quarter and 119 last year ago and 256 for the fiscal as against 261 last year.

For the fiscal, the total number of active clients was flat sequentially at 1,323 in Q4 and Q3 but up 100 from 1,223 in Q4 of 2015-16).

“We continue to maintain our focus on operational improvements and productivity enhancements,” said Chief Financial Officer Jatin Dalal in the statement.

Though the company added 8,570 people for the fiscal, exit of 8,650 techies during the fiscal, led to the total headcount decline to 165,481 (net addition) from 181,482 (gross addition).

The net addition in the previous fiscal (2015-16) was 156,831 and gross addition 172,912. (IANS)

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GE Healthcare partners with Partnerships for Affordable Health Access

Apr 25, 2017 0

New Delhi– Aiming to provide medical care to over 2.5 million urban poor in India, GE Healthcare and project PAHAL (Partnerships for Affordable Health Access and Longevity) on Tuesday announced a strategic partnership to address healthcare needs of underserved communities in the country.

The partnership will help in use of transformational medical technology, solutions and services to meet the needs of India’s urban poor.

Project PAHAL, implemented by IPE global — a consulting company providing expert technical assistance and solutions for equitable development and sustainable growth in developing countries — responds to the Indian government’s priorities of reducing morbidity and mortality among women and children in the underserved urban communities.

It leverages private markets and community engagement to promote healthy behaviour change, improve access to affordable primary healthcare, and reduce out-of-pocket expenses.

The MoU was inked by GE Healthcare’s Sustainable Healthcare Solutions President and CEO Terri Bresenham and PAHAL Project Director L.M. Singh.

“Pahal in a short period has built partnerships that provide a platform to serve healthcare needs of over 20 million urban poor in several high priority states of India, in line with National Health Policy and priorities,” said Singh in a statement. (IANS)

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Shapoor Mistry resigns from Indian Hotels’ board

Apr 25, 2017 0

Mumbai– Tata Group firm Indian Hotels Company on Tuesday reported that its Director Shapoor Mistry has resigned from its board.

Shapoor Mistry is the Chairman of Shapoorji Pallonji & Co and the elder brother of Tata Sons’ ousted Chairman Cyrus Mistry.

The company made the announcement through a regulatory filing to stock exchange NSE. The firm runs the Taj Hotels Resorts and Palaces.

On October 24 last year, Tata Sons’ Board ousted Mistry as its Chairman and appointed Ratan Tata as Interim Chairman. (IANS)

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Opinion: South Asia needs to improve its subdued competitiveness

Apr 25, 2017 0

By Amit Kapoor

South Asia is becoming one of the most interesting regions in the world economy, displaying unprecedented growth, averaging close to six per cent per annum since the 1990s. According to a new World Bank report, it has consolidated its position as the global leader in growth.

South Asia is expected to have grown by an impressive 6.7 per cent (y-o-y) as a whole over the last year, staying higher than the growth rate of East Asia, which stood at 6.3 per cent. Other regions around the world have either been growing slowly or contracting.

Even though India accounts for more than three-quarters of the region’s GDP, it is not the only country that has pulled the region into a high-growth trajectory. Apart from India, Bangladesh and Bhutan have grown at around seven per cent over the last year. In fact, Bhutan has become the fastest-growing economy in the region owing to its booming hydropower production.

However, there are a few causes of concern as well that can affect the region’s long-term growth. First, investments in South Asia have been second only to East Asia, but declining over the last year, being pulled down by India and Sri Lanka. South Asia’s public debt is also the second-highest across regions. These factors can be inimical to the economic growth of the region in the long run.

Second, and more importantly, South Asia has the weakest trade integration with the world and also within its economies. Globally, the region’s exports account for only around 10 percent of its GDP, which is second-least only to sub-Saharan Africa. As a region, South Asia’s regional trade accounts for less than six percent of its global trade. Now that labour in China is becoming costlier, South Asia can gain considerably by focusing on labour-intensive export industries. The debates about globalisation at least agree on the view that it has been poverty-reducing for developing countries. South Asia can tackle its poverty issues by spurring job creation through higher global and regional integration.

Third, the region has made little progress in diversifying its exports. Between 2001 and 2013, almost 80 percent of South Asia’s export growth came from the sale of the same goods to the same destinations. All South Asian countries have been paragons of particular industries: apparel for Bangladesh and Sri Lanka, business process outsourcing for India and light manufacturing for Pakistan. A lack of diversification in exports can be dangerous for a nation in the long run as industries can easily shift base when operations become uncompetitive in that economy.

Therefore, even though South Asia is currently the fastest-growing region in the world, it is in no way out of the woods yet. A wide range of factors can put the brakes on its run unless and until the region improves its subdued competitiveness. A short-term method is to keep costs low, but the only sustainable path is to increase the productivity of its factors of production. South Asia, however, has seen growth through the accumulation of factor quantities rather than an improvement in their productivity.

A sustainable and efficient mechanism to improve productivity is through agglomeration, that is, through the benefits that arise to firms and workers by locating close together. Research shows that a rise of employment by 10 per cent in a district results in a 0.2-0.9 percent increase in total factor productivity in the firms located within the district.

However, even though South Asia is heavily concentrated in terms of economic activity, the degree of geographic concentration has remained mostly unchanged. For instance, an earlier World Bank report found that the degree of geographical concentration of manufacturing activities in South Asia has hardly changed in the last two decades. South Asian countries have hardly benefitted from the creation of clusters and the productivity that arises out of it. It is due to this reason that industries like electronics, which benefit from proximity among suppliers and manufacturers, could never flourish in the region in a way it did in East Asia, despite the former having competitive labour costs.

If policymakers in the region focus more on raising productivity by encouraging formation of clusters, the region’s growth can become more sustainable in the long run. Competitive factor conditions along with lucrative clusters might attract foreign firms and investment. This would, firstly, tackle the issue of declining investments and rising public debt. Secondly, it would lead to better global integration of the region. Finally, creation of strong clusters leads to setting up of supporting industries around the region, which would also move the economy towards higher diversification.

By 2030, South Asia will be home to more than a quarter of the world’s working adults. Informed public policy moves will define their future.

(Amit Kapoor is chair, Institute for Competitiveness, India.)

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Jackfruit seeds could substitute cocoa beans to make chocolate

Apr 25, 2017 0

By K.S. Jayaraman

Bengaluru–New research has found that the seeds of jackfruit — a large fruit found in many tropical countries — are a potentially low-cost substitute for cocoa beans, the primary ingredient of chocolate.

Considering that the worldwide demand for chocolate is outstripping the production of cocoa beans, the finding reported in the American Chemical Society Journal of Agricultural & Food Chemistry would be welcome news for chocolate lovers.

While in some countries, the sweet-smelling jackfruit seeds are boiled, steamed and roasted before eating, providing a cheap source of fibre, protein and minerals, they are mostly thrown away as waste.

Jackfruit (Photo by Shahnoor Habib Munmun)

Globally, farmers produce about 3.7 million tonnes of cocoa annually, but estimates suggest that demand for these beans will grow to 4.5 million tonnes by 2020.

Researchers at the University of São Paulo who were looking to put the waste jackfruit seeds to better use discovered that compounds found in them produce many of the same aromas as processed cocoa beans and therefore could potentially be a cheap substitute for use in chocolate manufacturing.

The Brazilian researchers made jackfruit seed flours by acidifying or fermenting the seeds prior to drying. They roasted these flours for various times and temperatures using processes similar to those used to enhance the chocolaty flavor of cocoa beans.

Using gas chromatography and mass spectrometry, the team identified several compounds from the jackfruit flours that give chocolate its distinctive aromas — such as caramel, hazelnut or fruity.

While there are several reports on the use of waste jackfruit seeds to produce starch, “for the first time we found that after roasting, jackfruit seeds imparted an aroma similar to that of chocolate”, the researchers say.

They conclude that the cheap and abundant jackfruit seeds are thus “a potential replacement” for cocoa beans for the manufacture of chocolate. (IANS)

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Apple, Cisco, IBM owe their success to world-wide talent sourcing: Reserve Bank of India chief

Apr 25, 2017 0

By Arul Louis

New York– The titans at the commanding heights of the tech world owe their success to talent from across the globe, according to Reserve Bank of India Governor Urjit Patel, who pointed to what could be the Achilles heel of the ‘America First’ policy that seeks to restrict H1-B visas and imports.

“Where would Apple be, where would Cisco be, where would IBM be if they were not sourcing the best products and talent from across the world,” Patel asked here on Monday, and added a warning: “If policies come in the way of that, then the big wealth creators in a country that advocates protectionism are ultimately affected.”

Last year Apple applied for 1,354 H1-B visas, Cisco for 517, and IBM for 2,233 to bring in talent for their operations, according to a database maintained by Immihelp. (IBM applied for 13,115 H1-B visas in 2015.) H1-B visas are a scarce commodity in the tech world where companies vie for annual quota of the 85,000 visas meant for highly-skilled professionals.

Urjit Patel

Although Patel did not mention Google or Microsoft, both companies are headed by immigrants from India. The triumvirate at the top of the market capitalisation roster, Apple, Google and Microsoft, all have immigrant origins or connections.

Sundar Pichai is the CEO of Google, which was co-founded by Sergey Brin who immigrated from the former Soviet Union.

The biological father of Apple’s founder, Steve Jobs, is a Syrian immigrant, Abdulfattah Jandali.

“The most efficient corporations in the world, including in the US, benefit, their share prices are where they are because of the global supply chain,” Patel said. Microsoft CEO Satya Nadella’s performance underscores his observation about market performance.

Microsoft’s share prices that were lagging around the $36 range when he took over in February 2014 closed on Monday at $67.53.

Donald Trump, who ran for President on a platforms of “Buy American, Hire American”, has called for restricting the H1-B visas for professionals to higher-level technical positions paying higher wages and for bringing back manufacturing to the US.

While answering audience questions after delivering the annual Kotak Family Distinguished Lecture at Columbia University, Patel was skeptical about the efficacy of restricting H1-B visas and imports to solve the domestic problem of equity.

He ascribed the calls for protectionism in the US to income inequality, and said they “should be addressed through domestic fiscal policies, in other words, taxation and income transfers”.

“Using trade instruments like customs duty, border tax, etc. is not the most efficient way. In fact, it could end up somewhere else.” (IANS)

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