The Hindu Business Line : `India may garner 15% share of global KPO industry'

New Delhi June 10 The Union Minister of Commerce and Industry, Mr Kamal Nath, on Sunday said that India is likely to capture 15 per cent market share of the $54-billion global knowledge process outsourcing industry by 2010.

Addressing the Plenary Session on "The Emerging Power of Emerging Markets" at the 11th International Economic Forum at St. Petersburg, Mr Nath highlighted the change in the global trade that has come about as a result of the rise of the emerging markets.

"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 compared with 9.1 per cent in the previous year.

Very few countries in the world match these growth rates," said a Government press release quoting the Minister's speech.

Mr Nath also emphasised the opportunities presented by the country's farm and food processing sector which has been identified as a priority area and also spoke of India's strength in the gems and jewellery and automobile and auto-components sector. Further, quoting a McKinsey study, he informed that the Indian pharmaceutical industry is projected to grow to $25 billion by 2010.

Mr Nath informed that organised retailing in India is expected to grow at the rate of 37 per cent in 2007 and 42 per cent in 2008. The share of emerging markets in global merchandise exports has more than doubled between 1970 and 2005. From 12.3 per cent share of global exports, emerging markets now account for 28.8 per cent of global exports.