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NEW DELHI: India is readying a plan to step up its engagement with China big time, especially in the services sector. The tourism ministry will be running the 'Incredible India' campaign in Chinese media in the coming months besides introducing Chinese audio recordings at popular Indian monuments and providing training to guides to attract more tourists from the country.
New Delhi is also closely working with Beijing to ease market access barriers for Indian services exports in sectors like IT, tourism and health, which will not only help balance the wide merchandise trade deficit but also ensure better integration of the two large Asian economies. The commerce department is in talks with its Chinese counterpart for mutual recognition of medical degrees that will allow movement of Indian doctors to China.
In IT, government is pushing for easing of licencing norms to allow participation of Indian companies in local projects. Chinese state-owned enterprises (SOEs) will visit India in October to hold talks with Indian IT players.
The move is an attempt to leverage India's strength to balance the merchandise trade deficit, which stood at $35 billion in 2013-14 against just $1.08 billion in 2001-02. While India's services exports stand at around $150 billion, exports to China account for just about $1 billion.
Chinese foreign minister Wang Yi concluded his two-day visit to India on Tuesday during which he met Prime Minister Narendra Modi and foreign minister Sushma Swaraj, where he expressed keenness to forge stronger ties with India through investment in infrastructure besides importing more from India.
"Services side cooperation should have been quite substantial. The two governments and the private sector have started engaging in specifics to ease market access barriers and tap opportunities, which will be of interest to both the economies," said a commerce department official. Recently India announced making visa process easy for Chinese visitors under which tourist and business visas will be processed in two working days.
CII along with ministry of commerce and industry led a 45-member multi-sectoral services delegation to China from May 2 8 to June 1. IT/ITeS constitutes about 62 per cent of India's overall services exports, of which China does not even constitute 1 per cent.
Last week, about 31 state-owned enterprises of China had a roundtable with Indian IT companies, including TCS, Infosys, Wipro, Nasscom, etc. to understand procedures and requirements of the Chinese market. The Chinese market is dominated by SOEs.
The licensing procedures in IT for China are seen as very cumbersome and onerous. Minimum local qualification threshold, requirement of incorporation of local company, minimum investment requirement, among others, are a prerequisite to qualify in the bidding procedure for Chinese IT projects and are seen as barriers.
"We have suggested that they take advantage of global competitiveness of the company and not insist on local project management qualification requirement. Also, the requirement to have a local company and minimum investment puts Indian companies at a lot of disadvantage," said the official.
"To be successful in the Chinese market, Indian service providers must learn how to adapt to local conditions," said Chandrajit Banerjee, director-general, CII.
India takes tourism to China, health & IT services to follow - The Economic Times
New Delhi is also closely working with Beijing to ease market access barriers for Indian services exports in sectors like IT, tourism and health, which will not only help balance the wide merchandise trade deficit but also ensure better integration of the two large Asian economies. The commerce department is in talks with its Chinese counterpart for mutual recognition of medical degrees that will allow movement of Indian doctors to China.
In IT, government is pushing for easing of licencing norms to allow participation of Indian companies in local projects. Chinese state-owned enterprises (SOEs) will visit India in October to hold talks with Indian IT players.
The move is an attempt to leverage India's strength to balance the merchandise trade deficit, which stood at $35 billion in 2013-14 against just $1.08 billion in 2001-02. While India's services exports stand at around $150 billion, exports to China account for just about $1 billion.
Chinese foreign minister Wang Yi concluded his two-day visit to India on Tuesday during which he met Prime Minister Narendra Modi and foreign minister Sushma Swaraj, where he expressed keenness to forge stronger ties with India through investment in infrastructure besides importing more from India.
"Services side cooperation should have been quite substantial. The two governments and the private sector have started engaging in specifics to ease market access barriers and tap opportunities, which will be of interest to both the economies," said a commerce department official. Recently India announced making visa process easy for Chinese visitors under which tourist and business visas will be processed in two working days.
CII along with ministry of commerce and industry led a 45-member multi-sectoral services delegation to China from May 2 8 to June 1. IT/ITeS constitutes about 62 per cent of India's overall services exports, of which China does not even constitute 1 per cent.
Last week, about 31 state-owned enterprises of China had a roundtable with Indian IT companies, including TCS, Infosys, Wipro, Nasscom, etc. to understand procedures and requirements of the Chinese market. The Chinese market is dominated by SOEs.
The licensing procedures in IT for China are seen as very cumbersome and onerous. Minimum local qualification threshold, requirement of incorporation of local company, minimum investment requirement, among others, are a prerequisite to qualify in the bidding procedure for Chinese IT projects and are seen as barriers.
"We have suggested that they take advantage of global competitiveness of the company and not insist on local project management qualification requirement. Also, the requirement to have a local company and minimum investment puts Indian companies at a lot of disadvantage," said the official.
"To be successful in the Chinese market, Indian service providers must learn how to adapt to local conditions," said Chandrajit Banerjee, director-general, CII.
India takes tourism to China, health & IT services to follow - The Economic Times