People steal because they can't afford the price to buy the product. Now, country like ours where people couldn't offer to pay for legal softwares, this step of Microsoft would definitely cut down the piracy as well as inclination towards Open Source projects too. Since, Windows XP and other Office app will be available at such a low price, who would buy pirated crack version or who would get themselve into trouble installing/tweaking indivitual settings of Opensource programs. It is the exorbitant price of Windows software, which led many people to use pirated softwares. If i get Legal Windows XP at Rs 210 rather than Rs 17000, who'd consider thinking other way.

The main motto behind this, is to double the number of computers users in the world by 2015. May the initiative of the software giant, Microsoft, be fulfilled and in return the people of developing country could take these benefits.
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But there is brighter sides to piracy too. I mean today's pirated software user can be tomorrow's potential coustmer . Plus if a person is using a pirated XP in his home he would also Want to use the same platform in instution like office or college where he is going to transfer files to.
The stats you presented is much less the the original pc users. In china alone there are more than 1.25 pc users. well But a noble effort from microsoft . i think that they should use this low priced XP as os in their tablet pc they are developing for students of third world country.