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"Today, we are immensely proud to be the 'default choice' as the world's back-office. Our IT-enabled and other services exports top $40 billion a year. We have also evolved into a low-cost base for a range of goods and services," he said on Monday night at a meeting organised by the Commonwealth Business Council at the Marlborough House in London on the topic 'India: The New Paradigm'.
"India, at the same time, is rapidly ascending the knowledge chain. We are no longer a base only for low-end processes and operations. The unique combination of IT, biotech and a strong pharma and bulk chemical manufacturing base means that high-end R& D in sectors like pharmaceutical research, avionics can put India on the global knowledge map as a vibrant source of intellectual capital for the world.," he said.
"The next step on the journey is to move from BPO to EPO (Engineering Process Outsourcing) and even to KPO (Knowledge Process Outsourcing)," he added.
The new paradigm was that of a "credible India" with a six-decade old credible democracy, rule of law, an independent judiciary, free press and an economy witnessing a sustained growth of 7 to 8 per cent year after year," the Minister said.
"India also has a foreign exchange reserves of $150 billion, and whose merchandise exports will touch $100 billion this year," he pointed out.
"A transformation in the collective international mindset is taking place so that the world perceives us as more than just a base for low-cost operations. We are achieving an excellence in manufacturing reflected in a 12 per cent growth in our industrial sectors and this is the critical transition that is necessary for a truly robust economy," the commerce minister told the gathering.
He said the country was on the way towards making a transition as scores of Indian companies were emerging as global players, looking outward with a new-found energy and confidence.
"Last year, for instance, Indian companies paid almost $2 billion - five times the amount for all of 2001- to acquire 62 overseas companies," he said, adding "Indian firms are actually becoming global and if the trend continues, we will have a host of home grown multinational companies operating all around the world."
He said India's 'Look East' policy had contributed hugely to the new paradigm as India's Comprehensive Economic Cooperation Agreement with Singapore had accelerated investments from there and India's trade with China leapfrogged from a billion dollars a month to one billion dollars a day.
"Free Trade Agreements with countries as diverse as Sri Lanka and Chile, Thailand and Mauritius, and with the MERCOSUR countries of Latin America and the South Africa Customs Union countries were all part of a trend towards forging stronger relationships and maximising economic opportunities from some of the world's most dynamic economies," Kamal Nath said and called for building a stronger economic relationship between India and the Commonwealth countries in general and Britain in particular.
Prominent among those present at the meeting included Kamalesh Sharma, Indian High Commissioner, Keith Vaz, MP, former Minister for Foreign and Commonwealth Office, Dr Mohan Kaul, Director-General and Chief Executive, Commonwealth Business Council, Rahul Bajaj, Co-Chair, CBC Chairman and Lord Rana.
Earlier, the Minister attended a luncheon meeting organized by the High Commissioner, Kamalesh Sharma to meet the UK Commons Select committee on Trade and Industry and gave a perspective on the qualitative change in India's economic performance and policy environment and openness to partnership in all areas.
The minister invited all members of the committee, which comprises representatives of all major political parties and its Chairman Peter Luff to visit India and get a feel of the economic transformation that was taking place in the country.
Kamal Nath was particularly appreciative of the Committee's initiative to further economic partnership with India and pointed out that the meeting of the India-UK Joint Economic and Trade Committee held today would suggest concrete steps to carry this process forward.
Prominent business leaders from India as well as the two apex industry associations CII and FICCI- participated in the meeting.