Some encouraging reports about India

Vivek Wadhwa in The Berkeley Blog Entrepreneurship tech boom erupts in India :
"The Indian technology industry got its start running call centers and doing low-level IT work for western firms. Then, in the 2000s, it started taking on higher-level IT tasks, offering management consulting services, and performing sophisticated R&D. Now there is another transition happening, one far more significant: a transition to development of innovative technology products. Instead of providing IT services as the big outsourcing companies do, a new breed of start-ups is developing high-value products based on intellectual property. The Indian industry group NASSCOM estimates that in 2008, the country’s software product revenues totaled $1.64 billion. It forecasts that this will grow to $11 billion per year by 2015.
I was surprised at the changes that are powering the new transition: its tech workers are leaving high-paying jobs in IT services, and kids out of school are ignoring social taboos against failure and defying marriage customs to become entrepreneurs. A few Americans are also joining the fray, starting their ventures in India rather than in Silicon Valley.....
At the NASSCOM event, I met dozens of tech-service industry workers who had become entrepreneurs. A surprisingly high proportion weren’t developing products for their former customers, but were instead looking inward to solve India’s problems."
and Why some young US workers now seek fortunes in India from Christian Science Monitor.