Sat, 16 Apr 2011 10:50:16 GMT

India, China coming up fast as new tech powers

Washington: India and China coming up fast as new tech powerhouses will drive much of the growth in information technology over the next ten years, according to a new report.

Though a big gap still exists between these emerging markets and developed nations, that gap is bound to narrow over the next decade, the Forbes magazine said citing a recent Global Information Technology Report by the World Economic Forum.

Out of 138 countries tracked and ranked by widespread use of mobile phones, Internet, personal computer as well as regulatory environment and IT infrastructure, China ranks 36th and India 48th.

Among other high-scoring Asian countries, Singapore excelled in second place while Taiwan checked in at sixth, Korea came in 10th and Hong Kong 12th.

Last year, India and China also accounted for 13 percent of the $37.7 billion venture capital investment into startup and emerging companies globally, Forbes said citing Dow Jones Venture Source.

China investment jumped 59 percent to $4 billion while India weighed in with a 14 percent increase to $895 million - both higher than the 11 percent spike for the US at $26.2 billion.

Analysing trends in initial public offerings, Forbes noted China claimed 22 of the 61 venture-backed companies that went public in the US last year. India also got on the IPO map with the successful NASDAQ listing on online travel start-up MakeMyTrip.

"You don't have to be a rocket scientist to figure out why nearly all the Silicon Valley venture investors are looking for their hit from Asia, China primarily but also India plus Singapore, Taiwan, Korea and yes, maybe even Vietnam," it said.

Meanwhile, the World Bank and IMF said on Saturday that thanks to the rapid growth in India and China, two-thirds of developing countries are on track or close to meeting key targets for tackling extreme poverty and hunger.

On the whole, the fight against poverty is progressing well, said the Global Monitoring Report 2011 noting based on current economic projections, the world remains on track to reduce by half the number of people living in extreme poverty.

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