India’s trying to find ways to get into China’s $144 billion IT market. On May 27, an IT corridor was established between India and China to give Indian businesses a gateway into the neighbouring country’s thriving software market. NASSCOM, the Indian IT industry’s trade group, established a Sino-Indian Digital Collaborative Opportunities Plaza (SIDCOP) in the tech hub of Guiyang in southwest China.
Though this NASSCOM-led deal is good news on paper, India should be weary of becoming another outsourcing backyard for China, like it is for the US. “It’s the age of startups today and India is already lagging far behind China in AI,” said Sanchit Vir Gogia, founder and CEO of Greyhound Research. “Should we co-create when China is already leaps and bounds ahead. Should we instead focus on lobbying domestically for our startups?”
Then, there’s also China’s notoriety for intellectual property theft, Gogia warned. Besides, the long-term sustainability of foreign firms there is still unclear, given that even behemoths like Google and Facebook had to retreat. “The fact is China is still a closed market,” he added. “And…India-China relations are not at their best.”
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, an award-winning global research & advisory firm. To read more about him, click here.