New Delhi: Allaying any apprehension on US moves to curb Business Process Outsourcing (BPO) to India, Government today (Jul 19, 2004) told the Rajya Sabha that it would have a limited effect and BPO volumes to India were slated to touch $ 3.6 billion in value terms during 2004.

Commerce and Industry Minister Kamal Nath told the House during the Question Hour that despite the moves towards such restrictions, the BPO business to India was growing at a rate of 40 to 50 per cent annually.

The Minister said that the Government had taken up this issue very seriously with the United States Trade Representative and US Secretary of State Colin Powell.

He said that US President George Bush and Chief of Federal Treasury had also expressed concern over the rising outsourcing to India.

He said that as much as 70 per cent of India's BPO business comes from the US and only 2 per cent of the business relating to US Government contracts was affected due to legislation approved in the US Congress.

In reply to a query, Nath said the job outsourcing to India was worth $ 2.35 billion in 2002 and it was expected to touch $ 3.6 billion annually in 2003 and 2004.