'Political establishment and instability are the biggest hurdles'

If you need an example of how the Internet is changing the media business, Rafat Ali fits the bill to the T.

Do your observations mean India is going full throttle on the information highway? But how can that be when illiteracy and poverty plague the vast majority of the country?

Again, my point above: You can look at the problems in India, and then get bogged down, or you can do something about it. I'm not saying these big problems don't need to be tackled, but I am an entrepreneur at heart, and believe that people will find the way out of this if the right tools are given to them. And that tool, for now, seems to be technology and communications.

The good thing is that at least the technology can be brought into these areas by the private sector.

You have mentioned that farmers are using mobile phones to cut out the middlemen. But there have been -- and continue to be -- many instances of farmer suicides. They don't even have their basic means of livelihood. How can mobile technology help?

Well, it certainly can't cut down on farmer suicides, if that's what you mean. But it can provide an evolutionary step out of it. Again, these are not short-term solutions. They make the social and economic environment these farmers operate in better.

What are your observations on India versus China in terms of investment wooers?

Well, China is a more ready market for now, and the infrastructure is better. But the medium to long-term returns in India are going to be better: It has a more stable operating climate, and the markets are open.

Also, though I have no evidence for it, I would venture to say that Indians in the end might prove to be bigger spenders, and that means more opportunities for companies entering India.

What real changes have you seen in India that give you cause for optimism?

The younger generation is more confident; and the fact that they're getting exposed to what's happening around the world. I'm optimistic purely because of the rise of private enterprise and individual entrepreneurship.

What are the hurdles? And how, in your opinion, can they be removed?

Political establishment and instability are the biggest hurdles. This is what will hold back the country and its potential for at least a generation, and there seem to be no imminent reason for hope on this front. The idea is work around and encourage and work on innovation around the edges of the system. That is easier said that done, but technology and communications will make that possible.

When do you see the blog revolution taking off in India?

Well, no reason why it should not take off in another year or so. It is a function of Internet access in India, which should reach a tipping point by 2007, hopefully. Once that happens and Indian Net users can stay online for a few hours everyday, that's when it will take off.

And, finally, do you think the NRI's view of India is balanced? As in, is it not extreme -- either 'it's the pits' or 'my country will soon rule the world'?

Not really… it happens to me: I come every year, see things changing, and then after a few months back in US, forget all about it. I guess it is our default reaction.

One thing I will say though: Despite all the progress in various states in India, the one state where nothing really is happening is UP, which is a pity, really. Nothing has changed in my small hometown Aligarh. The only thing that has happened is that people have cell phones and more cars, but the roads are worse, the haphazard construction, no power for days at end in summer, and bad in winter too.

I've been told this is mainly a UP-specific thing where there is no political stability or even will to change for the better.