In the recent move, India has launched Second IT Corridor in China. This move was the result of policy changes made by the US, due to which Indian IT companies are running out of business.
Chinese software market continues to remain on the top of the game despite the presence of major Indian Technology companies.
Second IT Corridor, SIDCOP Established in China
Second IT corridor or SIDCOP was launched by The National Association of Software and Services Companies NASSCOM has launched another Digital Collaborative Opportunities Plaza in China with an expectation of providing market access to Indian IT firms in Chinese IT sector.
The Agreement amounting to USD 6 Million was signed between Indian IT companies and Chinese customers. In China, the Guiyang Municipal government took the initiative along with the NASSCOM to make the launch of Second IT corridor a success.
According to Gagan Sabharwal, Senior Director, Global Trade Development NASSCOM, the IT Corridor’s agenda is to focus on Big Data Relevant projects. The MoU which was signed at the launch event will become operational by 2019.
India’s ambassador to China Gautam Bambawale stated that “In this way, we will be marrying the requirements of Chinese companies with the capabilities of Indian IT service providers. We visualize that these initiatives will give a big impetus to cooperation between India and China in the IT-enabled services sector.” He is optimistic about the fact that this collaboration will establish a friendly relation between India and China.
First IT Corridor- Dalian IT Corridor
In 2017, December NASSCOM collaborated with Chinese authorities to establish first IT corridor,
Dalian IT Corridor. This Corridor Focused on IoT related projects. Dalian will be providing opportunities to small and medium-sized Indian IT firms. While Dalian focused on IoT projects, SIDCOP will focus on big data project. A Common platform using Artificial Intelligence will be created between first and second corridor. Zeta- V will be establishing this Artificial Intelligence enabled platform.
India-China Business and Commercial Ties Can Expand Rapidly
After the last month’s informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping , Gautam Bambawale feels that “India-China relations are progressing well, particularly after the Informal Summit.
In his address in the informal Summit Prime Minister stated that “In the last 1,600 years, the economies of India and China have contributed about 50 percent of the global economy,” he has also added the proposal of a 5 point agenda for bilateral ties which includes, common vision, better communication, strong relationship, shared thought process and a shared resolve.
In the same summit, the president of China stated that “a good China-India relationship is an important and positive factor for maintaining peace and stability in the world”
Stressing on the positivity of the informal submit Bambawale added that As a result of the successful talks between President Xi and Prime Minister Modi at Wuhan, we now have a political environment in which India-China business and commercial ties can expand rapidly”
China’s IT Market is Growing Rapidly
The estimated value of China’s IT market is USD 493 billion as recorded in 2013, since then the market is growing rapidly. India’s involvement in such interesting market growth will prove beneficial to both countries.
It is important for Ministry of Industry and Information Technology of China, to focus on the huge trade deficit which has now increased up to USD 51 billion. In order to reduce the bilateral trade deficit. Indian have been in talks with China to access Indian IT and pharmaceutical firms.
These 2 corridors are seen as a gateway to the much – needed platform for Indian IT companies. Seeing the potential Bambawale presented a perspective picture of Indian IT firm’s presence in the Chinese market
“As you all know, India is a world leader in the area of Information Technology and IT-enabled services with annual revenue of over USD 164 billion and exports of over USD 120 billion,” he said in his address.
“Our IT companies have a presence in more than 70 countries in the world, generating employment for up to 12 million people worldwide. In China, Indian IT companies are present in 10 cities around the country, with a total work-force of around 25,000 employees. However, we believe that the potential for Indian companies to cooperate with China is huge and needs more work and efforts,” he said.
Sabharwal also mentioned the future plans and expansion of new IT corridors by NASSCOM in the different province based on the local requirements.
All this trade negotiation and new platforms will become a stepping stone towards progressive future of IT sector in India.
Since China and India’s relationship has always been full of up and down. How do you think that these First and Second IT corridors will be beneficial for the IT working class of India?
Share your opinion in the comment section below.