The Hindu Business Line : Auto, pharma, IT sectors to propel India Inc: Study

Forecast
The auto parts industry likely to almost double to $18.7 billion by 2009.
Pharma sector expected to reach a market size of $9.5 billion by 2010.
BPO is seen to grow 34 per cent to $12.6 billion in 2007.

New Delhi, Feb. 21

The country's automotive, pharmaceutical and IT services sectors will reach critical mass this year, propelling Indian globalisation strategies, according to a survey by a cross-border mergers and acquisitions analysis firm IndusView.

Auto sector

The Indian auto component industry is likely to almost double to $18.7 billion by 2009 and reach about $40 billion by 2014. Further, India is expected to move ahead of the UK and Canada as a car-producing country by 2008. Its car production capacity is expected to surpass 2 million units by 2008 from the current capacity of more than 1.4 million units. It has already surpassed Korea to become the third largest car market in Asia-Pacific after China and Japan.

"Since only eight out of every 1,000 people in India own a car, compared with 16 in China and 500 in developed markets, it is clear there is a lot of room for growth," said Mr Bundeep Singh Rangar, Chairman of IndusView.

Pharma Industry

Another area of growth, according to IndusView, will be the pharmaceutical sector. The pharmaceutical industry is expected to grow by more than 13 per cent to $6.5 billion in 2007 and reach a market size of $9.5 billion by 2010, surpassing the growth trends of 9.5 per cent recorded over the last 5 years.

"The progressive trend in this sector is expected to continue, due to increased integration with global trade which began with the signing of the General Agreement on Tariffs and Trade (GATT) in January 2005. India started to recognise global patents and the growing significance of the country in terms of contract research and clinical trials," said Mr Rangar.

IT services

IndusView is also forecasting continued growth in the IT services sector. Software and related services exports are expected to touch $21 billion in 2007, a growth of 21.6 per cent. Business process outsourcing is also expected to increase by 34 per cent to reach $12.6 billion in 2007.

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