Business Standard caught up with Microsoft Corp Chairman Bill Gates in an e-mail interview. Excerpts:
Do you see any threat to Microsoft from companies like Yahoo! and Google which have entered the software market?
The software space always has new companies coming into the domain and for the first time people seem to underestimate Microsoft. It is healthy competition and it is good to be underestimated once in a while.
What are the challenges that Microsoft currently faces?
The technology industry is as competitive as ever, but I think Microsoft's opportunities are far greater than its challenges. Right now we have one of the strongest product pipelines, and we are delivering new innovations to customers in everything, from Windows Vista and Office 12 to our next-generation of developer tools and Xbox 360.
I believe that the products and services we will release this year will help kick-start another era of innovation for the entire industry.
There seems to be consensus on the need to provide free software and the world seems to be entering the era of open-source code, where software is given free. How does Microsoft propose to approach the emerging scene?
There has always been free software, and there always will be. However, I think the greatest innovations come from the kind of focused investments that commercial software companies can provide.
In countries like India, where you have so much talent and potential for future breakthroughs, economic growth will be driven by jobs and revenue from companies that are building businesses around commercial software. Microsoft's role is to make sure that our partners have the best tools and knowledge to make this happen.
In India, only 5 per cent of the population understands English and there are 700 million people who live in rural areas. In such a situation, to reach to the non-English speaking people in non-urban areas, how important is local language computing?
One of the best ways to bring the power of computing to everyone is to make it available in a way that is affordable, simple to use and available in the languages people know. By offering products like Windows XP Starter Edition as well as localising many of our products, we are committed to helping software reach beyond language barriers and make an impact on as many people as possible.
How big is the threat of China to India in the software space?
The global technology market will continue to grow as businesses depend more and more on information technology, and people increasingly use computers to help manage their daily lives. China and India will compete for the high-paying jobs this creates.
The key question for me is how can India, China and every other country best compete in such a fast changing marketplace? There are obviously many factors here, but several stand out.
Governments need to create laws and policies that encourage research and development, support the development of businesses, and protect intellectual property. Educators need to take a long-term view, and ensure that students are exposed to mathematics and science early.
You need entrepreneurs who are willing to think big and take calculated risks, and government policies that support them.Powered by 
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