|
David Good*, who heads the Tata
corporate office in the United States, explains his
mission and the Group's vision for spreading its business
wings in America
I
first came to India over 30 years ago, as a brand new
US Embassy official in New Delhi. If at that time average
Americans thought about India at all, they imagined
a poor country with people begging on the streets
streets filled with elephants, tigers, fakirs and the
like.
All of that has changed: now
if you ask the average American about India, he or she
would probably tell you it is a land full of smart young
techies who are stealing American jobs. A vastly different
image of India, but still not what India really is.
The biggest challenge right now for the Tata Group in
the US is to change the image of Indian companies as
basically outsourcers. As head of the Tata Group's new
corporate office in Washington DC, that is my job; and
although I will be doing that for the Tatas, Indian
industry in general should benefit as well.
I worked for the American State
Department for 34 years and my last job in India was
as Consul General in Mumbai. That was a wonderful assignment
which my wife and I loved. In 2002, I returned to Washington
DC and after a two-year stint as the director of the
India, Nepal and Sri Lanka office in the department's
South Asia bureau, I retired from government service.
Not long afterwards, mutual friends put me in touch
with representatives of the Tata Group; they had recently
decided to open a Washington office and were looking
for someone to head it. I began work on February 1 and
my colleague Kapil Sharma a former staff member
in the US Congress joined me on March 1.
I have known about the Tatas
since my first arrival in India, back in 1971. It is
a wonderful Group. While Consul General in Mumbai, I
met several of the company's directors and other senior
Group officials whom I have a lot of respect for, especially
Ratan Tata. He told me that he envisioned my position
as an ambassador of the Tatas to the US. That's the
kind of terminology I am very familiar with, and a role
I'm very comfortable in.
The work I am doing with the
Group is in fact quite similar to what I was doing with
the State Department, only in reverse. Then I was representing
the American government to the state governments and
the people of western India. Now I am representing the
Tatas to US federal and state government officials,
to US industry and to the American people.
The Tata involvement with America
dates back to the early 1900s. Margaret Tutwiler, who
used to be the spokeswoman for the State Department
and is now a senior official at the New York Stock Exchange,
says one of her ancestors was one of the first managers
of Tata Steel in Jamshedpur a hundred years ago
something I verified while visiting Jamshedpur. Tata
Incorporated a subsidiary of Tata Steel headquartered
in New York City just celebrated its 60th anniversary.
Today, Kapil and I have identified more than 80 Tata
offices in the US, with nearly 10,000 people working
in them.
Americans don't know much about
Indian companies, and therefore need to be made aware
that the Tatas are the gold standard of Indian companies
committed to the kind of investment that means
more jobs in their country, and more money invested
in the economy that they want to set down roots
in the US. The Tatas have recently completed the purchase
of Tyco Global Network the undersea broadband
cable company and have taken over management
of the luxury Pierre Hotel on Fifth Avenue in Manhattan,
New York. They are currently considering acquisitions
in other American cities. All of this means new investment
and new jobs and, believe me, there is nothing that
lights up the eyes of US politicians more than hearing
about jobs that are created in their constituencies.
This is the first time that a
major Indian company has opened an office in Washington.
There are a lot of companies that have sales offices
in the US, but I believe not one has had this kind of
operation. I see this office as having three principal
objectives. First, we want people to understand that
better economic and political relations with India is
a two-way street it is going to benefit the US
and India. That's our first objective. We want to reach
out beyond Washington to New York, California and other
places where people are open to knowing more about the
Tatas and about India.
A second objective will be to
support Tata businesses in the US. I will be focusing
primarily on the companies that already have a presence
in the US: TCS, Indian Hotels, Tetley, Tata Tea, Tata
Automotive Components and Tata Steel. I want to make
sure that they are aware of changes in the political
and regulatory atmosphere in the US that may affect
them as they plan their US business strategies. I will
also do whatever I can to promote business for them
in the US market.
A third objective is to create
a corporate social responsibility strategy for the US.
We haven't settled yet on specific projects in the CSR
field; we want to look around a bit more to find the
right thing. An area that the Tatas could be associated
with would be something like IT and computer education
for children in inner cities. Whatever we do, ultimately,
it may be conceived and designed, say, in Washington
but ideally will be carried out in several cities around
the US.
Another objective, and one towards
which we already have a head start, is associating ourselves
with anything that promotes the India-US relationship
in the Washington and New York areas. That means involvement
with academic institutions, think tanks, political institutions,
research institutions, business associations and so
on. Wherever they are doing anything in the Indo-US
framework whether it is politics, trade, history
or social issues there is a role for us to play.
In that way, the Tata Group will be associated in people's
minds with the new partnership between our countries.
We have already supported several
programmes, such as those by the Confederation of Indian
Industry and the US-India Business Council. We co-sponsored
the USIBC's 30th anniversary meeting that took place
on June 1. Basically part of the US Chamber of Commerce,
the council has historically represented American businesses
that are trying to invest in and export to India. But,
in recent years, the USIBC has begun drawing in Indian
companies as well, which is why the Tata Group has been
a major corporate sponsor for the last several years.We
also intend to support other organisations that promote
better Indo-US relations. We are members of the Asia
Society as well as the Chicago Council on Foreign Relations.
One body that's vitally important
to us is the US Congress. The India caucuses in the
Senate and the House of Representatives are made up
of Congressmen and women who are well disposed to India.
The Senate caucus on India is co-chaired by Hillary
Clinton and an office like ours can become very important
for her. Hillary Clinton has been getting flak from
people who feel she is too closely associated with Indian
business companies. They ask her, aren't they just taking
American jobs and sending them out to India? So, it
is important for us to be able to make her aware that
there are Indian companies like the Tatas that are actually
investing in the United States and creating new jobs.
In fact, I can go into any government
office right now and say, you want to see new jobs that
have been created by the Tatas? Look at us. There are
as many as 20 new positions in northern Virginia alone
representing TCS, VSNL and our Tata Sons office. The
Tatas are also saving jobs. Had it not been for VSNL's
acquisition of Tyco Global Network, TGN would possibly
have shrunk drastically in size. Once somebody like
Hillary Clinton knows this and starts talking about
it, a much larger number of opinion makers are going
to realise that the Tatas are doing quite a few positive
things in the US.
A lot of people in India are
afraid of the Sino-US relationship, because China's
trade and business relationship with America dwarfs
India's. I have a slightly different view on this. I
am not sure that US-China ties are actually stronger
than those with India. I think only the economic ties
are deeper, because there is much more American investment
in China than there is in India right now. In that sense,
US business and the government have a much greater stake
in maintaining good relations with China. The political
ties, I think, are actually stronger between the US
and India right now, because China is not a democracy,
besides which it still has major human rights problems.
India can and should make itself
a little more attractive as a place of investment for
American companies. They're very interested in India
right now; it's the flavour of the decade. But American
companies are also wary of India. They may be comfortable
with BPOs, call centres and things like that, but when
it comes to real investments in manufacturing, hardware
or infrastructure, they find the regulatory climate
very difficult, the labour climate very uncertain and
they are still uncomfortable about corruption. It's
nowhere near as difficult for them to break into China
because that government has made it much easier for
foreign companies to come in.
However, the Tatas are showing
the way for many US companies. Time and again, over
the last couple of months, representatives of American
companies have come to me in Washington and said they'd
like to come into India, but are uncomfortable about
just dropping in on their own. The one group they feel
very comfortable with is the Tatas, because the Tatas
have such a good reputation for straightforward dealing,
for integrity. They say: "We'd like to come into
India, and we'd like to do it with you." That does
not mean the Tatas will, or even can, pick every one
of these opportunities. Some of these companies really
don't have anything to do with our core competencies
or specialities. But what it does mean is that we are
building a reputation in select circles the kind
of golden reputation that the Tatas already enjoy in
India. When you do that you automatically begin to attract
companies that would be interested in working with you.
I would like to think
that my job with the Tatas is not merely to open new
doors for the Group itself, but for India as a whole
that's the Tata way of thinking. I believe that,
sooner or later, other major Indian companies will also
open up offices in Washington or some other place in
the US. They can then join forces with offices like
ours to improve the overall understanding of the India-American
relationship, not just in Washington and New York but
throughout the United States.
*David Good joined the US State
Department in 1971 after graduating in political science
from the State University of New York at Stony Brook.
After 34 years in the Department, serving in the State
Department, the US Information Agency and in diplomatic
postings in India and West Asia, he was made the US
consul general in Mumbai, a position he held from 1999
to 2002. Good retired in 2004 as director of the Department's
Washington DC office for India, Nepal, Sri Lanka, Bhutan
and Maldives affairs. The much-travelled Good is conversant
in Hindi, Gujarati, Arabic and Hebrew. David Good spoke
to Christabelle Noronha.
|