India: A $30-Billion Engineering Off-shoring / Outsourcing Hub
posted in Outsourcing News and Top Outsourcing deals |Source: IANS
A new study believes, the next seven years will see India’s Engineering Process Outsourcing (EPO) business grow 10-fold, to touch $30-billion, which will make the country a major hub in this area.
The study released by Kamal Nath – Commerce Minister says: “The estimated demand for Engineering Process Outsourcing to India has grown at 30-35% since 2004-06,” adding a sustained momentum in the ensuing years.
The study conducted by state-run Engineering Export Promotion Council (EEPC) says, the global EPO market, on the other hand, will grow to around $110-$140-billion by 2015, taking India’s share to 20-27%.
Expressing concern over the decision to do away with the duty entitlement passbook scheme, an export incentive programme, next year, Rakesh Shah, Chairman of EEPC confirms engineering exports from India touched $26-billion in 2006-07.
However, Kamal Nath assures the government is working on developing an alternative duty neutralisation scheme to replace the current scheme that will be in tune with the norms set by the World Trade Organisation.
Asking engineering exporters to use the focus market scheme to their advantage in promoting exports to the identified markets, the minister especially laid emphasis on the Commonwealth of Independent States (CIS), while adding as many as 16-new destinations, including CIS were included in the focus market list, this year, making it useful for exporters to concentrate on developing the markets in these countries.
However, he warns: “Indian exports including engineering exports are likely to face increased non-tariff barriers, considering that average tariffs for industrial products in all countries is headed southwards,” even as, he is of the opinion that the process for engineering products will gain greater momentum, as the coming years see an increase in India’s share of world exports.
