Shanghai: Highlighting India's achievements in Information Technology, Prime Minister Atal Behari Vajpayee suggested an "effective alliance" between India-China IT sectors and said it could become a "potent force" with far wider applications in South-South co-operation.

Dwelling upon the progress made by India in the software field and China's leaps in the hardware sector, Vajpayee told an industry gathering that "our respective competence provides a natural ground for an effective alliance in the IT industry."

The strong international brand recognition of Indian IT firms was an asset that can enrich an India-China IT partnership, The Prime Minister said in a speech on "India and China: Challenges and Opportunities in the IT Sector".

Observing that technological advantage could be sustained only with research and continuous innovation, he said if countries like India and China were to concentrate on specific areas of their technological advantage, they could benefit far more than by competing across the spectrum.

"In combination, rather than in competition, Indian and Chinese IT industries can be a potent force. This is a principle which has far wider application in South-South co-operation", Vajpayee said on the penultimate day of his six-day official visit to China.

PTI