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India, Australia plan infotech alliance

India and Australia said today that they wanted to form an alliance on information technology, or IT.

The India-Australia Ministerial Council, meeting in Canberra, released a study on possible links for electronic commerce and computer software.

The report highlighted the strengths and weaknesses of Australia's $ 18-billion IT industry and India's $ 6-billion industry.

Trade Minister Mark Vaile said Australia had a more developed IT infrastructure, an environment more conducive to e-business and more value-adding IT businesses.

India had a strong entrepreneurial culture, a large domestic economy and a cost-effective supply of skilled workers, Vaile added.

"There are clearly opportunities for Australia and Indian companies to capitalise on these strengths and weaknesses," he said.

India's Commerce and Industries Minister Murasoli Maran said emerging partnerships between the two countries would remain private-sector driven.

"We want to capture the synergies that exist between two industries," Maran said.

"Government role will be restricted to playing the facilitator and co-ordinator, that's all."

India is acknowledged as one of the most important bases for off-shore IT services, with 203 of the Fortune 500 companies among its customers.

It also has a strong IT presence in the US.

American-Indians now generate an estimated $ 60 billion a year and manage 40 per cent of the ventures in Silicon Valley.