June 05: After big booms in retail, real estates and IT, the country is swaying towards the fruitful branches of Engineering Process Outsourcing EPO. The EPO market is expected to touch 30 bn US dollars annually by 2015.
At present the size of the EPO market is about 3 bn dollars. But the growth witnessed in this sector has been outstanding. The EPO has shown a growth of 30 -35 per cent in just two years, 2004-2006.
A strategy paper brought by Export Promotion Council stated: “India is poised to become an EPO hub with the size of the market expected to touch 30 bn anuually by 2015. The global EPO market is poised to grow to 110-140 bn dollars by 2015.”
The strategy paper was based on the analysis of a consultancy AF Ferguson.
Releasing the strategy paper, the Commerce Minister Kamal Nath said, “The given recommendation made in the paper will be carefully studied, so that the EEPC could play a proactive role in promoting the EPO sector, besides export of engineering goods. This process has already begun for engineering products and is likely to gain greater momentum as India's share in world exports increases in the coming years, thus, the Doha Round of Trade Negotiations under the auspices of the WTO is a good opportunity for India and other developing countries to leverage such issues.”
Kamal Nath warned Indian exporters to confront the increased non-tariff barriers and considered that average tariffs for industrial products in all countries is headed southwards. The minister asked the engineering exporters to capitalize the identified market especially the Commonwealth of Independent State (CIS) by utilizing the focus market scheme for their advantages. As many as 16 new destinations have been added including CIS in the focus market list this year.
On this occasion, EPCC chairman Rakesh Shah said, “The exporters have done a tremendous job, and we can now touch 26 billion dollars mark in 2006-07. The demand for EPO has grown at 30-35 percent from 2004 to 2006.” He also mentioned about several concerned areas of engineering exports. He raised several issues regarding excise and duty. In his response Nath, assured to the exporters to develop an alternative Duty Neutralization Scheme that will be implemented from April 01, 2008. The current Duty Entitlement Pass Book will carry on till then.
|
|
Comments:
