China welcomes Indian IT venture

Bangalore-based Infosys will open an office in Beijing

China has given rapid consent to a request from Indian software giant Infosys Technologies to set up shop in Shanghai.

Narayana Murthy: Asked for permission to enter Beijing

"I am giving him approval right here," premier Zhu Rongji said, responding to an informal request from Infosys chairman NR Narayana Murthy.

The question was raised during a visit by Mr Zhu to an Infosys facility in India's software capital, Bangalore.

Together, China and India could dominate the world's information technology markets, Mr Zhu said, describing the two as "the two greatest and wise nations".

"You are number one in terms of software we are number one in terms of hardware... together we make the world's number one," he said.

Exciting surprise

"Infosys will open a branch office. The process has just begun," the Indian giant's chief executive, Nandan Nilekani, said.

Zhu: Thumbs up for Infosys' arrival in Beijing

"China is the leader in the hardware sector and I think there is a vast possibility for Indo-China co-operation in the IT sector."

Mr Zhu praised India's success at creating a $6.2bn software industry from an embryonic $50m sector in 1991.

Already, the industry has been a major economic force for India, and its role looks set to grow as it takes advantage of the huge Chinese market, he said.

"The number of telephones and mobile subscribers are as many as 350 million, making [China] the largest country in this connection," Mr Zhu said.