Indian tech growth outpaces China

Indian growth is being driven by multinationals

India will boast the fastest growing technology sector in the world this year, according to research group Gartner.

The research shows the Indian domestic market will grow by between 25% and 30% during 2003.

While China will remain number one in overall market size, India's growth will outstrip China's.

China has been the top spot for foreign direct investment since it joined the World Trade Organisation at the end of 2001.

The sustained economic slowdown has worked in India's favour, making it hard for US enterprises to ignore the cost benefits of setting up offices in India.

Security concerns

"Investments in captive units of large multinational corporations will continue to be the key driver in the industry," Gartner said in a statement.

But the report warned that increased security concerns would result in increasing competition for India as US and British firms look for opportunities closer to home.

Gartner is not expecting a pronounced global recovery of the technology sector until 2004.

But when that recovery comes, the report said, the Asia-Pacific region will lead the way.