Business process outsourcing (BPO), the latest mantra in the information technology industry, can now be equally important in the Rs 20,000 crore rubber industry. India can be a major destination to outsource rubber and rubber products for US and Far East manufacturers.
However, this can be achieved only if the government finds a viable solution to the current rubber crisis and paves way for an atmosphere that allows co-existence of growers and industry.
According to Anil Sampat, president, All India Rubber Industry Association (AIRIA), cheaper labour costs in the Asian region is attracting the US and EU markets to shift manufacturing base of rubber and rubber production. Globally the BPO oppotunity is pegged at US $100 billion.
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While Mexico is expected to gain most because of its proximity to the US, India too can play a bigger role for its neighbouring countries.
AIRIA has already set the ball rolling in this direction by initating steps to attract investments from the US markets by tying up with the rubber division of American Chemical Society.