Non-tariff barriers stifling Indian IT firms in China, execs tell Piyush Goyal
India’s leading information technology firms, including TCS, Wipro and Infosys, have raised concerns over the unfriendly business environment in the Chinese market.
The Indian IT heads, in a meeting with commerce minister Piyush Goyal, said their investments and businesses have not been able to grow in the neighbouring country due to various non-tariff barriers and challenges.
Top five Indian IT service companies, including Tech Mahindra and HCL, have been running businesses for a decade and employing 90% local people in China but their returns remain low, executives told Goyal. As a result, Indian IT service companies are not keen on investing and expanding their operations in China, they added.
Goyal has asked the National Association of Software and Services Companies (Nasscom), the IT industry lobby, and senior managers of the companies to share data regarding non-tariff barriers.
“The government of India will provide all support for the global growth of India’s flagship industry and will make further efforts to facilitate the IT service industry,” Goyal said in a statement.
The minister said Indian companies must explore business opportunities in other markets like the Nordic countries, eastern and central Europe, Canada, Australia and Africa as well as the East Asian markets.
“The top five Indian IT firms should create a corpus that will be spent on training manpower in languages like Mandarin, Japanese and Korean for accessing the markets in these countries,” Goyal said.