India: Economic Analytical Unit Report

Media release from the Australian Department of Foreign Affairs and Trade

The Department of Foreign Affairs and Trade wishes to clarify a number of
misunderstandings about aspects of the recently released report by the
Economic Analytical Unit on "India, New Economy, Old Economy",
particularly as these relate to Australia's IT sector.

The India report is not advocating exporting jobs to India at the expense
of the development of the Australian IT sector. On the contrary, it
unequivocally underlines the significant strengths and the creativity of
Australia's IT sector in a variety of fields and argues that this offers
considerable scope for mutually beneficial cooperation with India's IT sector.

The overriding aim is to enhance Australia's export capacity in the IT
area. Cooperation in this field offers Australian companies opportunities to
increase their competitiveness, secure larger markets both at home and
internationally, and most importantly, expand jobs for Australians in
Australia. The report notes that this can provide considerable benefits to
Australian companies.

The Department of Foreign Affairs and Trade has always recognised the high
calibre of Australia's IT industry and has worked extremely hard over many
years to support it in international markets. In producing this report on
India and other country-specific reports, the Department's aim is to assist
Australian companies to identify opportunities to grow their businesses and
generate jobs for Australians.

Media Enquiries: Lyndall Sachs DFAT Media Liaison 02-6261 1555

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