The
globalization was welcomed in Indian
economy with many ambitious and high end promises in 1991.The impact which it
aimed to create was wiping regional imbalance and suddenly pushing the economy
on a speedy springboard of prosperity and growth year after year.
The Indian service sector was
almost ready for a transformation into a professional and customer oriented for
customer.It was estimated that the employment would multiply,incomes may
grow and also we would move to be a
developed India.
Quite against the expectations
the actual picture doesnot have any pleasant colours,the employment generation
have been at a fluctuating rate,the incomes remained ore or less shifted
fragments of income creating the total income of the sector almost at the same
level.With respect to the GDP contribution by service sector even though it has
increased ore than 5 times in comparision with 1991 but growth has been more
pleasing for an Economist’s analysis of statistics but certainly not matching
the growth aspirations of an average Indian.
EFFECTS Of GLOBALISATION ON INDIAN SERVICES SECTOR
OPPORTUNITIES AND
CHALLEGES
Introduction:Globalisation
in its true sense means to upscale the economic activity of any country with
the overall growth and development taking place across the countries.It was the
same promise which lured Indian economy
and its people to provide a red carpet welcome to this concept of mingling with
the world’s traditions and adopting a culture of modernization with an Indian
touch.
Indian Economic Scenario PreGlobalisation:An overview about
the Indian economic position before globalization shows that somewhere the
public sector managed and owned by Indian govt managed to grow and provide a
secured and sustainable growth to the various segments and service sector.
In simple terms the servicer sector was more profitable and
employment oriented before the globalization factor as compared to the after
implementation.
In service sector of any economy developed or the developing
the main crux lies on as to whether there is increase in the incomes and better
economic facilities to the common man due to the advantage and faster reach of
the service sector.
It is pertinent to note that among the service sector
defence was given the highest expenditure allocation for many years till
1991,this not only drained the impact which could have been created by the
service sector and also help in terms of creating the right change and the
impetus through which there can be support as well as right direction which was
much awaited in the service sector.
If one compares the education scenario before 1991 even at a
slow pace the education was affordable and easily accessable before the open
economy system as compared to the scenario when Indian was flooded with private
universities offering high value and highly sophisticated courses.
The same position applies to the health sector even with
bare minimum facilities prior to the globalization the average Indian could at least afford the 3 to 5 times the
medical expenses 3- 5 times in a yea now inspite of mediclaim the same has
decreased to about 2 times affordable capacity after the globalization.
Indian Economic scenario after Globalisation: Post
globalization the entry of the private players in the various service segments
not only provided a new definition to the service sector but also added one ore
dimension to the service which was ‘Affordability’. Yes we all are connected by
wireless and cordless telecom service but does the same contribute towards
increasing the income when every one else also has the same facility.The time
has finally arrived when we as ourselves a very basic question that is
globalization mere increasing the expenditure on the services provided by the
service sector or is it improving the percolation of the growth to the as and
the most vulnerable strata of society.
We do claim with pride that
Retail sector got glorified after service industry.In its true sense the
retailers have become more prone to squeezing the margins after entry of
foreign retailers by FDI mode.It is expected that is foreign giants enter the
market about 42% of the unorganized retail would be on verge of extinction du
to lack of service and more so the lack of the right marketing strategies.
Our Opportunities with
Globalisation:One of the most prominent dividends by the globalization is
developing prompt and effective range of services accessible just at the click
of mouse. It is nothing but digitalization of services which has been of the
most rewarding success via globalization it not only has helped to improve the
spread of services but also made it possible to create the groundlevel
framework to create long term working models.
We created new segments in
services like lifesciences,micro finance,commodits,derivatives etc for average
Indian who now can endeavour to fit in his lower strata of income with the
entry level base of services sector.
Challenges in the service
sector:The service sector in India is subject to a series of hurdles ahead.The
sector has a common dilemma of
increasing costs and decreasing revenues in the times to come.Not only there is
likely to be problem of lay offs in sector especially the very vulnerable BPO
sector but also in plum segments like Banking and Insurance there has been a
single digit growth in private secor.The latest news being Apollo Insurance and
Future Generalle insurance have already closed their shops and Bharti AXA
reporting a all time low in sales volumes in past three years.With these
conditions in mind it is
certainly not a promising position for Indian services be it hospitality
segments like seven hills not able to pay its staff or increasing NPA’s of
Housing loans in India the only factor which would and sustain the growth of
Indian services in the future shall be the customer base and the affordability
so that fortune at the below the line segment may drive and accelerate the
services growth in India.
