Indian software success worrying China

New Delhi, March 24 | Updated: Mar 25 2005, 05:30am hrs
Even as Chinas software industry has achieved remarkable growth in recent years, it has displayed apparent weaknesses vis-a-vis India in this sphere. This has become a subject of much concern and debate in business circles and among officials and policy researchers in China. This was disclosed by Prof Feng Lu, head of China Centre for Economic Research at Beijing University.

The Chinese software industry is doing a remarkable job but is bothered by the brilliant performance of the Indian software sector, Prof Lu told FE on the sidelines of a Confederation of Indian Industry (CII) organised conference on The China Miracle here. While the IT sector has played a critical role in the economic development for India and China, the growing pattern and structure of core competitiveness for the sector differ greatly between the two countries, he said.

Elaborating further, he said, Chinas IT sector in 2003 was $232.3 billion in which software sector accounted only for about 8.6%. Chinas total IT sector export was $142.1 billion of which the share of software was barely over 1%. All are in sharp contrast with India. According to Prof Lu, for 2003, share of software in the IT sector in China was a mere 9.3% .