Indian IT must enter China: IT secy

Wednesday, 30 October 2002, 08:00 Hrs
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BANGALORE: With the Chinese threat looming, Indian infotech companies need to push their way into the massive market in that country and go up the value chain, advises a top IT official.

"We should have a big presence there, particularly since the entire world is present in China, to set up registered headquarters in Hong Kong that still has Anglo-Saxon laws," IT secretary Rajeev Ratna Shah said on the sidelines of 2002, Asia's largest IT event.

To face the Chinese threat, the government has already started the process of implementing a part of a report recommending production of 3,000 engineers annually in VLSI design to help India go up the value chain, he said.

"The first batch of 60 students will begin this year at C-DIT, Mohali (Chandigarh)," Shah said at 2002.

"The China factor is looming large. Please don't underestimate that threat. Their hardware strength is six times that of India and they are scaling up their software strengths fast. They are establishing institutions in 35 of their states to release torrents of activity," Shah said.

"We need to get into the high end of the value chain in areas like VLSI design, embedded systems, micro and nano electronics."

Asked about his earlier suggestion that India see China as a collaborator to take on the world rather than as a competitor, Shah said, "We could still do that in certain ways.

"(But) we cannot be diffident about China because the entire world is going there. We could use Hong Kong as the headquarters and have field offices in China to eke out something out of there."

Source: IANS
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