Wong Choon Mei
KUALA LUMPUR: Indian Information Technology Minister Pramod Mahajan said on
Monday that Indian exports would not be dragged by the US economic slowdown
although profitability might be reduced. "The size of the economy will not
shrink, the size of businesses will not shrink, although margins may fall here
and there," Pramod told reporters after opening Indian software company
NIIT's regional multimedia development centre in Kuala Lumpur.
Pramod is accompanying India's premier Atal Behari Vajpayee who is on a
three-day-visit to Malaysia during which, a raft of economic agreements are
expected to be signed. "The US slowdown will not last more than three or
four quarters and we view it as an opportunity for Indians to prepare for the
next phase of development," he said.
India's tech industry is valued at about $8 billion but the sector has been
hit by a downturn in the US economy, its main market, which accounts for more
than half of total sales.
Eyes now on ASEAN
India's technology-savvy firms such as Infosys Technologies, Satyam Computer
Services and Wipro have been successful in the international arenas. It now eyes
the awakening markets of Asean, a trading bloc of 10 nations comprising,
Malaysia, Singapore, Indonesia, Philippines, Thailand, Brunei, Vietnam,
Cambodia, Laos and Myanmar.
As an emerging global computer software power, India will be looking to take
advantage of Malaysia's infrastructure facilities in its high-tech Multimedia
Super Corridor (MSC), industry leaders said. The MSC is one of the most
ambitious projects launched by Malaysian premier Mahathir Mohamad to help the
country achieve developed nation status by 2020.
Malaysia's is among the world's leading chip manufacturers, sub-contracting
for some of the largest US computer giants such as Intel Corp and Dell Computer
Corp. India is Malaysia's 11th largest trading partner.
(C) Reuters Limited 2001.