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BPO sector exports expected to have reached $17.8 bn: Deora

Last Updated: Wednesday, March 20, 2013 - 22:03

New Delhi: Despite the global economic crisis, the country's exports from the business process outsourcing (BPO) sector are expected to have grown to USD 17.8 billion in 2012-13, Parliament was informed on Wednesday.

"Exports from BPO sector in India have grown from USD 12.4 billion in FY 2010 to USD 17.8 billion (expected) in FY 2013 despite the global economic crisis," Minister of State for Communications and IT Milind Deora said in a written reply to the Lok Sabha.

Deora said as per National Association of Software and Services Companies (Nasscom), in the BPO sector, especially voice based segment, revenue from Philippines is increasing but India continues to be the leader with 37 percent of the world's BPO market.

"The market share of the Indian BPO sector in the global BPO industry has increased from 34 percent in 2009 to an expected 37 percent in 2012. The global BPO sourcing market has grown from USD 36-38 billion in 2009 to USD 48-50 billion in 2012," Deora said.

The sector is expected to have provided direct employment to 9.17 lakh people, he added.

"The total size of BPO sector has grown from USD 14.7 billion in 2009-10 to an expected USD 20.9 billion in 2012-13 and has provided an estimated employment to 917,000 people in 2012-13," Deora said.

The government has extended several incentives to increase the IT-ITES/BPO export revenue. Under the software technology parks (STP) scheme, IT-ITES/BPO units are eligible for various tax benefits such as customs duty exemption on imported goods, reimbursement of central sales tax and excise duty exemptions on procurement of indigenously manufactured goods, he added.

"Further, the Department of Commerce, Ministry of Commerce and Industry through marketing development assistance (MDA) and market access initiatives (MAI) scheme assists small and medium enterprises for export promotion activities abroad," Deora said.

The Department of Commerce has notified 235 IT-ITES specific special economic zones.

Currently, the SEZ units are eligible for tax benefits as per Section 10AA of the Income Tax Act for a period of 15 years in a phased manner.


First Published: Wednesday, March 20, 2013 - 22:03
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