India is poised to become the hub of Engineering Process Outsourcing (EPO) with the size of the Indian EPO market expected to touch US $ 30 billion annually by year 2015, from the current size of a little over US $ 3 billion.
The estimated demand for engineering process outsourcing to India has grown at 30% to 35% from 2004-06. The global EPO market is poised to grow to US $ 110 to 140 billion by 2015.
This is indicated in the Strategy Paper on “Growth of Engineering Process Outsourcing from India” which was released by Shri Kamal Nath, Union Minister of Commerce & Industry, at the All India Awards presentation function of the Engineering Export Promotion Council (EEPC).
The Minister congratulated EEPC for bringing out a strategy paper on EPO indicating the potential that exists in this emerging sector and assured that the recommendations of the strategy paper would be carefully looked into by his Ministry so that the EEPC could play a proactive role in promoting the EPO sector, besides export of engineering goods.
Shri Rakesh Shah, Chairman, EEPC informed that engineering exports from India had touched the US $ 26 billion mark in 2006-07 and attributed this achievement to the outstanding performance of engineering exporters. He also flagged several issues of concerns to engineering exports.
Responding to some of the issues raised by Shri Shah in his speech, Shri Kamal Nath mentioned that the Duty Entitlement Pass Book (DEPB) had been extended till March 2008 and his Ministry was working to develop an alternative Duty Neutralisation Scheme that would replace the DEPB Scheme, which would lapse next year.