By Prof Bardrinath
More than 50 % of India’s Gross Domestic Product (GDP) comes
from services. Service sector provides
employment. It requires lower investment and capital. It is also a source for
high foreign earnings. It has led to an improvement in the standard of living.
According to Sean Harkins, “In the 17r century Indian and
China accounted for 60-70% of the world’s earnings.” Today India accounts for
around 5 % of the same.
Historically, India has been an agricultural economy. China
was able to move from agricultural sector to manufacturing and that worked for
their economy. However, India realized that it could not manage the
manufacturing sector efficiently and focused on the service sector.
India could be the global service super power. India
provides cheap and cost effective professionals to the world. By 2030, India
will provide 50 % of the total services in the world. The average age of
Indians would be 29 by 2020. This average and the Indian English language
skills along with our demographics will be favorable for India in the global service
sector industry.
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