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China's Wen sees ''Asian century'' for IT industry
AFX Europe
Apr. 10, 2005

Chinese Prime Minister Wen Jiabao, on a tour of India's technology capital, called for closer cooperation to launch the "Asian century" of information technology.

India's software skills combined with China's dominance in hardware can trigger a shift in the global technological landscape, Wen said at the offices of Tata Consultancy Services, the country's biggest provider of software development and outsourcing services.

"Cooperation is just like two pagodas. One hardware and one software. Combined we can take the leadership position in the world," Wen told reporters.

He was due to visit the Bangalore offices of Huawei Technologies, China's largest telecoms company which employs 800 Indian and 30 Chinese and plans to invest 100 mln usd in the country.

Wen will also tour India's national space agency and the Indian Institute of Science and Technology in Bangalore.

He arrived in the city on Saturday from Sri Lanka on a tour of South Asian nations that also included Pakistan and Bangladesh.

"If India and China cooperate in the information technology industry we will be able to lead the world technology industry and when that particular day comes it will signify the coming of the Asian century of the IT industry," Wen said.

India's software sector contributes 4 pct to the country's gross domestic product and grew 43 pct during the fiscal year to March 2004. The industry is expected to earn 75 bln usd by 2008.

The technology sector has added 45 bln usd to India's foreign exchange reserves since 1998 and employs 850,000 people, according to government figures.

Wen noted that India's growth in software mirrors China's efforts in manufacturing.

"Just a few years ago we used to produce 5 mln cellphones annually and now we are producing more than 100 mln phones. Now China has more than 500 mln phones of which 50 pct are fixed lines and 50 pct are mobile phones," he said.

S. Ramadorai, chief executive of Tata Consultancy Services, said his company was exploring opportunities for collaboration in the technology sector.

"India is a leader in software and China in hardware. There are a number of things we can learn from each other. China has a strong domestic IT industry and we are exploring possibilities (of cooperation)," Ramadorai said.


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