Look beyond BPO, Kamal Nath asks US industry

Mumbai, Nov 29 (UNI) Union Minister for Commerce and Industry Kamal Nath today asked the US industry aspiring to do business in India to look beyond BPO, pleading that India's educated technical manpower offers such opportunity at a very competitive cost. Addressing a special session as part of the ongoing US-India Business Summit here today, the Minister said ''I suggest that the US corporate not only look towards India as a destination for BPO, but also for increased KPO and EPO operations to reduce their cost and enhance their global competitiveness.'' A 238-member business delegation from the US, led by the US Under Secretary of Commerce Franklin L Lavin, is attending the ongoing two-day summit, which is jointly held by Government of India, US Department of Commerce, CII and FICCI.

He said massive investments are required to match the growth projected in the coming decades.

Referring to a study by the Investment Commission of India, the Minister said an investment opportunity of USD 500 billion was required in the next five years in major economic activities.

Talking about other sectors in the country that require investments, he said power sector provides investment opportunities of USD 200 billion by 2012 by addition of about 100,000 MW capacity.

On the US business houses present in the country, he said ''The Indian arms of the two American banks, Citibank and Bank of America, are more profitable in India than their global average.'' Similarly, GE has recouped more than three times its investments in India, he added.

Mr Nath said ''Let me assure you that our government is taking steps to reduce the regulatory burden on businesses and to provide better infrastructure facilities. Almost all the State governments too are carrying out the reform agenda forward and trying to provide a more congenial environment for business.'' UNI KKD SSS AW2004