India diary, day 6: Prime Minister's question time

Friday 9 February - Mumbai

I'm discovering that Indian entrepreneurs have an amazing capacity for networking.

When I've been in lunch queues, waiting for taxis and crammed in lifts people introduced themselves and gave me their cards. One of the other reporters here even said an executive introduced herself while they were washing their hands in the ladies toilets.

Special Report: Inside India

In February silicon.com's Steve Ranger visited the Indian tech hotspots of Bangalore, Mumbai, Pune and Hyderabad to explore the exploding Indian offshore tech and BPO industry. Keep up with his daily diaries here.

♦ India diary, day 1: Cyberbad on Sunday
♦ India diary, day 2: Emergency calls and rural life
♦ India diary, day 3: Inside the outsourcing campus
♦ India diary, day 4: Hyderabad's tech park
♦ India diary, day 5: Margaritas to Mumbai
♦ India diary, day 6: Prime Minister's question time
♦ India diary, day 7: Mobiles in Mumbai
♦ India diary, day 8: Pune or bust
♦ India diary, day 9: An auto-rickshaw ride and a catwalk show
♦ India diary, day 10: Lost in Pune
♦ India diary, day 11: I heart Bangalore
♦ India diary, day 12: Searching for the next big thing
♦ India diary, day 13: Thirsty in Bangalore

It's a reflection of the energy and excitement in the air. Everybody wants to grab the opportunity and that means networking with as many people as you can, as quickly as you can.

It's the big day at Nasscom - the Prime Minister of India, Shri Manmohan Singh, is coming to speak so security is tight. The morning session looks at whether India is getting too over-heated and over-hyped and another session explores the growth of the Indian venture capital market.

I'm beginning to think more about what the rapid growth of the Indian tech industry means for the UK and for its IT workers. As another delegate says to me rather bluntly: "What will your bloated economy do?"

Before I can put together a decent answer the doors to the courtyard where I'm sitting are thrown open by security and we are told "the sanitisation process has begun" - ahead of the PM's visit. We're moved inside.

Somehow there isn't enough room in the auditorium for all the delegates to hear the Prime Minister's speech, so some of us are rapidly directed to another room to hear it piped in over speakers. Some delegates aren't too happy about this but even as a few row with security, others queuing up for the room are introducing themselves to fellow attendees and business cards are brandished and exchanged. The networking cannot be halted.

IT is the "torchbearer of the Indian image in the world which is increasingly positive and demands increasing respect", the PM says.

In his speech he praises the industry and says the government is committed to this "flagship sector" and will do all it can to develop its sustained growth and success. He points to improvements to the legal framework and education system as big plans.

But he also issues a challenge: "While the IT story is a remarkable story there are millions of people whose lives are still untouched by it," he says. "This is a failure but also a growth opportunity.

"We need inclusiveness in IT to ensure that rural people get the benefits of the IT explosion. The IT industry must reach out into the hinterland."

But the industry also wants something from government - at the moment there are some juicy tax breaks for Indian IT companies, although some of these are due to be phased out by the end of 2007. If they aren't extended, the industry is claiming, this could hurt smaller businesses and even force some larger ones to relocate.

After Nasscom ends, on the way back to the hotel I'm treated to another fine example of Mumbai driving. As the cab swings around a corner two pig-tailed school girls, no more than seven years old, step out from the curb from under the flyover.

I wince as they walk straight out into the seven lanes of traffic and my toes curl up as I can see my driver is continuing to bear down on them. He's seen them - he's just not going to do anything about it.

With only a couple of feet to go before the collision and just as I'm about to shout out he moves the wheel a fraction, and we whip past with inches to spare. Neither the girls nor the driver seem at all bothered but in the back of the taxi I wipe my brow and breathe again.

Finally I get back to the hotel. It's a classic example of the clash of values you find everywhere in India. The hotel itself is sparkling, yet only a few feet down the street is what looks like a bomb crater, full of stinking water. The physical distance between rich and poor in India is often tiny - but the difference in living conditions is huge.

Have you visited India to check out the outsourcing options? Or have you been affected by offshoring here in the UK? We want to hear your stories and comments about offshoring. Leave your comments below or email editorial@silicon.com.