The initiative has a greater significance as it can help the Indian software companies to fight the US economy slowdown with newer opportunities in US market. "Against the backdrop of slowdown of US economy, the Nasscom-ITAA pact assumes greater significance, as it would try to bring new opportunities of business to IT industries of both countries," said Mr Dewang Mehta, president, Nasscom. Mr Mehta was speaking on the occasion of signing the memorandum with Mr Harris N Miller, President, ITAA here today.

According to Mr Mehta, Nasscom and ITAA have been working very closely together for the last five years and have now decided to formalise this agreement. Mr Mehta said that the pact will facilitate a lot of new initiatives such as road shows in US by Indian companies to explore new markets and opportunities, sharing of research information,, web linkages between the industry players of the two countries and joint efforts for policy initiatives such as lowering down of non tariff trade barriers. Mr Miller said, "The emphasis of this MoU will be on software, IT services, Internet, e-commerce, m-commerce, ASP, communication software, e-security, e-government and IT enabled services." Highlighting IT trade between India and USA, Mr Dewang Mehta said, "USA continues to be India's largest software export market and it will continue to have its dominant position. In 1999-2000, out of total Indian software exports of $4 billion, almost $2.35 billion was exported to USA. In 2000-01, out of projected software exportsof $6.24 billion, almost $3.7 billion of software is expected to be exported to USA". Mr Mehta also emphasised that, "we would now work very closely in creating marketing alliances between US and Indian IT companies with a special focus on SME member companies".