India to have 15 p.c. of KPO by 2010

NEW DELHI, INDIA: India is likely to capture 15 per cent of the over $54 billion KPO industry, union minister for Commerce and Industry Kamal Nath said.

Addressing the plenary session on “The Emerging Power of Emerging Markets” at the 11th International Economic Forum at St. Petersburg today, he recorded the strides that India has made in attracting foreign direct investment (FDI)

“We are likely to capture around 15 per cent of the over $54 billion KPO industry worldwide by 2010. With an estimated growth rate of 9 per cent over the next five years starting 2007-08, India will need an investment rate of 35.1 per cent of GDP. Hence, there is a huge investment potential in the upcoming knowledge process outsourcing (KPO) sector,” he said.

“What better example to cite the growing clout of emerging economies than India, which has recorded the fastest GDP growth in 18 years, with the economy growing 9.4 per cent in 2006-07. While India continues to alter the coordinates of global trade, the country itself has seen robust growth in manufacturing with the sector growing 12.3 per cent in 2006-07 as compared to 9.1 per cent in the previous year. Very few countries in the world match these growth rates,” the minister added.