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Disruption is India’s BPO would Impact FDI: US Business Advocacy Group

    23 March , 2020         Fdiindia

Disruption is India’s BPO would Impact FDI: US Business Advocacy Group

According to an Indian-based US business advocacy group, a disruption in India’s BPO sector, which is essential in giving critical customer and technical support to the United States’s health and emergency services, will negatively impact the foreign direct investment equity inflows in the country.

After PM Modi’s national address, as citizens gear up for the ‘janata curfew’ in view of the deadly COVID-19 spread and as steps like work from home policies are being set in place at mass level the US-based business advocacy group insisted that there is a need to look into the provision of providing some kind of exemption to those call centres and services in India that are providing crucial support to America's critical cell centres.

A disruption like this is sure to have a an impact on future overseas investment in India. Mukesh Aghi, president of US-India Strategic and Partnership Forum told new agency PTI that these services should be brought back to the United States.

The yearly revenue generated by the Indian BPO industry amounts to over USD 10 billion and gives employment to hundreds and thousands of youths.

"The economies are so interlinked now that you have to have some kind of a policy where all countries supporting each other. For example, India provides almost 30 per cent of the generic (medicine) to the US and they should not get impacted.

"Now the challenge India has is that a large chunk of API (Active Pharmaceutical Ingredient) comes from China. So, it's a complex issue and that has to be worked out within India, the US and China to make sure that critical drugs are being supplied, ..

Aghi also praised the prime minister’s global leadership role in the battle against the novel virus. He deemed the "Janata curfew" a very positive thing.

"Janata curfew" a very positive thing.

"While the interest in India continues, the current turmoil is having companies focus more on the domestic side to make sure that the employees are safe, their customers are engaged," he said

"You have to also understand (that) when you do a kind of a Janata curfew in India and Prime Minister said give me two weeks of your time... and you have a large BPO (Business Process Outsourcing) industry which is supporting health industry in the US... hospitals, emergency centres... that we need to figure out how to handle that," he said.

"Because if you don't, then they are not able to provide those services then it has an impact on future investment and a messaging that these urgent services should be brought back to the US," Aghi said.