Cisco Systems, the No 1 data networking company in the world, will invest $8.6 million in setting up 34 networking education academies across all states and union territories in India, announced CEO John Chambers in New Delhi, in a press conference addressed jointly by him and India's minister for information technology, Pramod Mahajan.

"What is important is not the size of investment, but the fact that Cisco, unlike other companies, is spreading this investment, in the entire length and breadth of India. It has not just gone to one or two states which already have built their infrastructure," said Mahajan, thanking Chambers. 

On his part, Chambers, praised the leadership of Mahajan, and outlined three major challenges for India to emerge as a leader in the Internet era. He said the first major challenge before the country is growing the GNP by developing infrastructure. The second challenge, according to Chambers, is building an effective corporate-government relationship. Here, government's understanding of technology, will go a long way, he added. The third major challenge, he said, specifically for India, is to cash in on the global trends of outsourcing of software and services and use its capability to lead in the Internet economy.

He also announced setting up of a centre of excellence in networking technologies at an investment of $1.4 million.

Chambers is on a three-day visit to India and will address CII and NASSCOM members on Tuesday. Chambers will also deliver the keynote address at Cisco's to day Technology Showcase 2001, being held on 15-16 January.