Chinese telecom gear maker Huawei Technologies has already kicked off the production of optical network transmission equipment in a plant in Chennai of South India, said Justin Chen, CEO with Huawei Technologies India Pvt. Limited on Wednesday night.

Chen said the plant also would manufacture wireless network equipment in the future while refraining from elaborating the investment amount for the plant.

Huawei will spend 2 billion U.S. dollars in the next five years in Indian operations with 500 to 600 million U.S. dollars in the research and development area, said Chen.

Huawei also has started the building of self-developed research and development park in Bangalore with 120 to 140 million U.S. dollars of investment.

The park named as Huawei Campus covers more than 8 hectares and could harbor 4000 employees with construction work to be finished in 2 years, according to officials with Huawei.

Chen said Huawei has done significant contribution to help Indian IT industry move up the value chain through introducing manufacturing of telecom gears in India and fostering many professionals in this regard.

Furthermore, the heavy presence of Huawei in India also facilitates the people-to-people exchange between China and India, deepening friendship between the two sides, said Chen.

Now, Huawei has 1000 to 2000 person-times of transnational visits between the two emerging giants.

India could be a step stone for those Chinese BPO and IT services providers which aim to enter Western and Middle East market, said Chen.

Chinese outsourcing players could set up branches or join hands with Indian players to utilize India's strength in language, geographical and demographically ties as well as cultural similarities.