The worlds second largest populated country, India, is the apple of the eye for the world now. The world economies are seeing it as their potential market. India has been one of the best performers in the world economy in recent years. The economy of India is the fourth largest in the world. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. The main economic activity of India is still agriculture, but services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labour force. Software exports has major share in India's total exports. The BPO industry has played a major role in increasing revenue for Indian Economy. India is truly the outsourcing capital of the world.