India looks to seal pact on IT and software with China

NEW DELHI: India will push for an agreement on information technology and software with China during the third round of strategic and economic dialogue beginning Tuesday in Beijing even as it tries to protect its markets from a flood of Chinese goods. Asia's two largest economies are also expected to hammer out an agreement to develop India's railway infrastructure, which includes improving heavy haul operations, station development and speeding up trains, as part of the dialogue. "They want to get access to our electronics hardware sector and want India to harmonise its standards to theirs. China wants to get into mobile telephony, digital TV, audio, but we are not interested in that as we want to develop our domestic industry," the official said. "We will ensure that our interests are not compromised." Nasscom President R Chandrashekhar recently said India's electronic hardware suffered from a 'competitive disability' when compared with countries such as China due to reasons that included the high cost of finance, power and uncertainty over logistics. Railway Board chairman Arunendra Kumar will discuss collaboration on improving heavy haul operations and speeding India's trains by improving railway tracks with Chinese help. This may allow room for a quid pro quo during the talks. India is assessing whether it could give the Chinese a concession by putting in place an enabling policy on railways while pushing for IT access. Investment from China has traditionally been regarded with suspicion related to security concerns. It contributed just $313 million, or 0.15%, of India's total foreign direct investment (FDI) inflows between April 2000 and December 2013. India and China fought a war in 1962 and there are unresol .. But given the woeful state of India's roads, railways and other facilities, the country would benefit from China's success in these areas. "Our infrastructure is in shambles and China has done wonders, so we are working on collaborating with them. We need to import signaling equipment and coaches but the exact contours are yet to be worked out," said the official cited above. The dialogue will include intensifying cooperation in finance, railways, software ITeS (IT-enabled services) and electronics besides building ties in business and trade development. While India and China are targeting $100 billion in bilateral trade by 2015, the balance is heavily skewed in favour of the latter. At the end of fiscal 2012-13, China's trade surplus with India was about $39 billion. Greater access to China's services market can help narrow this deficit. A commerce department delegation is likely to visit China in mid-April to discuss trade and bilateral relations.