India on May 27, 2018 launched its second IT corridor in China to benefit from the nation’s growing software market.
The IT corridor, Digital Collaborative Opportunities Plaza (SIDCOP) platform, was established in China’s Guiyang city by the National Association of Software and Services Companies (NASSCOM).
Objective: The main aim behind the move is to provide market access to Indian IT firms in the vast Chinese market.
• During the launch of the corridor, agreements worth about six million US Dollars were signed between Indian service providers and Chinese customers by China's Guiyang Municipal government and the NASSCOM.
• The pilot projects launched on the SIDCOP platform would be executed during 2019.
• NASSCOM had established its first SIDCOP platform in the Chinese port city of Dalian, which is India's first IT hub in China, in December 2017.
• The Dalian IT corridor was formally launched a few days ago.
• While the focus of Dalian corridor was on IOT (Internet of Things), the Guiyang corridor will focus on Big Data.
• The launch ceremony saw the participation of more than 350 representatives from Indian and Chinese companies.
• The initiative is being replicated in other Chinese cities as well.
The initiative will bring together Indian software and Chinese hardware and boost cooperation between the two nations in automation, artificial intelligence (AI) and other emerging IT fields.
It will enable marrying of the requirements of Chinese companies with the capabilities of Indian IT service providers.
• India's top IT firms have a huge presence in China, especially multi-nationals and IT Corridor at Dalian, which is expected to provide a gateway for the Indian IT-small and medium-sized enterprises.
• For India, getting access to China's IT market, valued at over $493 billion in 2013 by the ministry of industry and information technology of China, is important to address the massive trade deficit which has now spiralled to over $51 billion. The Chinese IT market grew exponentially since then.
• India has been demanding China to provide market access to Indian IT and pharmaceutical firms for several years to reduce the bilateral trade deficit.
• The two corridors, which were started in collaboration with China's provincial governments, are expected to provide the much-needed big opening for Indian IT firms.
• India is a world leader in the area of Information Technology and IT-enabled services with annual revenue of over $164 billion and exports of over $120 billion.
• Indian 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 with a total work-force of around 25000 employees.
• In addition to the Dalian and Guiyang, the NASSCOM is in touch with four other provinces including Wuhan to work out new IT corridors based on local needs.