Hong Kong woos India Inc, keen on IT firms

Saturday, October 30, 2010

NEW DELHI - Hong Kong is optimistic about economic ties with India, and expects more Indian companies, particularly information technology (IT) firms, to set up shop there, the city’s investment agency said.

“We are very optimistic about the future of investment and business relationship between India and Hong Kong. Presently there are leading Indian banks, airlines and other enterprises which have offices there,” Simon Galpin, director-general, InvestHK, told IANS here.

“We have 1,500 Indian companies doing business there, we expect this number to go up. As the Indian economy expands, markets like Hong Kong would provide a conducive environment,” said Galpin.

India and Hong Kong shared similarities in spheres like English language usage, and company law, he said.

“The city also has a very simple mode of taxation,” added Galpin who was here for a roadshow held Oct 27.

As one of the largest receivers of foreign direct investments (FDI) in the world, Hong Kong’s search for new investment inflow destinations is part of its long-term strategy, an official with the delegation said.

“We are one of the world’s major services, command and control and logistics providers. We are looking for Indian information technology firms, including IT-enabled services providers, to come to Hong Kong,” Galpin said.

He further said that the agency was in touch with three to four companies, and expected them to setup their operations within a year’s time.

Small and medium enterprises too looked at Hong Kong as a base to tap into the Chinese market.

“I am looking for a distribution base in Hong Kong for the Chinese market, as it is geographically close. The investment agency has guaranteed to provide all the support and infrastructure,” said a retail and electronic component entrepreneur, requesting anonymity.

Presently, around 1,500 Indian companies have set up operations in Hong Kong, including Bank of India, ICICI Bank, UCO Bank, Jet Airways and Infosys Technologies, among others.

Filed under: Economy

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