The Indian government is seeking to strengthen its IT industry with UK technology.
"The domestic demand for ICT is vast and the Indian government is committed to facilitating partners in this area", said Indian High Commission minister Anil Verma. "For example, India's mobile phone network has over 525 million subscribers and continues to grow at a rapid pace."
Verma was speaking at a conference organised by industry body Cambridge Wireless and UK Trade and Investment (UKTI).
The conference brought together a panel of experts to discuss what India should mean for UK technology businesses - covering realities, myths and perceptions of doing business in India.
According to Cambridge Wireless, trade between Europe and India has increased rapidly in recent years, with the UK being India's second largest trading partner after Germany, and India being the UK's second biggest services export market.
"New models for entering the Indian market are evolving", said UKTI's Was Rahman. "We can take what has been done successfully by UK companies and plug it into existing Indian value chains. UK SMEs can become globally competitive by entering into the international supply chain system. We have established links with influential Indian players who are keen to create their own competitive edge by partnering with our firms."
Indian demand from its domestic electronics and IT industry is growing fast, and there is strong demand for technology products and services that support the development of the country's blossoming infrastructure - such as construction services, e-government and healthcare.
"Recent examples include Qualcomm's announcement that they would bid in India's broadband wireless auction, picoChip's decision to set up an office in Bangalore, Jaltek Systems continued growth of its Indian operations and PowerOasis's decision to make India a key priority in its sales plans," said Cambridge Wireless.
Indian Government statistics, according to Cambridge Wireless, indicate that the top three sectors attracting the highest cumulative foreign direct investment (FDI) equity inflows up till December 2009 were the services sector (financial plus non-financial) at $22.8bn, telecommunications at $2.3bn, and computer hardware and software at $595m.
"Things are definitely happening to bridge the digital divide and the Indian government is currently rolling out its broadband programme to the same standard as in the UK," said Geoff Llewellyn, director at IT services firm WIPRO.
Norms for the operations of venture capital funds in India have been liberalised to boost the IT industry, said Cambridge Wireless, and its government is actively providing fiscal incentives and also liberalising norms for FDI and raising capital abroad.
"Those who understand the potential for UK technology products and services demanded by a fast growing economy of over one billion people already recognise that you can't afford to ignore it," said UKTI's Was Rahman. "SMEs looking abroad need to have an informed view on India."
Further joint events between Cambridge Wireless and UKTI covering the global value chain will be held throughout the year, including 'Accessing global value chains in China and Japan', on April 21 in Cambridge.