September 11, 2013

Finanace Journalism


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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