India Now - page 18

tors have been strategically selected
by the DIPP based on an assess-
ment of the inherent strengths of
the country, wherein investment
would provide the infrastructure
and environment for attracting
and nurturing more industries and
services and have a multiplier effect
on the economy. A plan of action
for the short and medium term for
the thrust sectors under
Make in India
was prepared after intensive discussions
between various stakeholders including
the Centre, states, industry associations
and knowledge partners during the
National Workshop on
Make in India
held in December 2014. The identified
services sectors under the programme
include information technology (IT) and
telecom, tourism, media and entertain-
ment, healthcare, logistics, professional
services, education, research and devel-
opment, and space.
The impetus to the services sector
in 2013-14 was the result of growth in
financial, real estate, tourism, transport
and other services. It was acknowledged
by experts that the services industry’s
growth had led to an improvement in
the economy on the back of increased
income inflows into the country, trade
flows, foreign direct investment (FDI)
and enhanced employment. Mr Rajat
Wahi, Partner, Management Consult-
ing, KPMG India, commenting on the
services sector’s contribution says, “IT,
telecom, tourism, health-
care and logistics are the
prominent sectors within
the services sector, and
together were valued at
close to US$ 500 billion, or
a quarter of India’s GDP,
in 2014.” It is in such a
backdrop that Prime Min-
ister Modi, acknowledging
the immense contribution
and scope of the services
sector, envisions making
India a world class hub of
services across verticals
including, healthcare,
tourism, education, media
sector to attain its full potential and reach
the No.1 rank. Mr Amitabh Kant, Secre-
tary to Government of India, Ministry of
Commerce and Industry, Department of
Industrial Policy and Promotion, while
explaining why the services sector will
gain from the
Make in India
says, “The aim of the programme is
to develop India as a manufacturing
hub. The growth of the
manufacturing sector is
interlinked to the develop-
ment of the services sector.
We have recognised this
symbiotic relationship of
infrastructure, services
and skills with the manu-
facturing sector in concep-
tualising the
Make in India
initiative. It is evident from
the fact that the 25 sectors
identified as thrust sectors
Make in India
across manufacturing, ser-
vices and infrastructure.”
Make in India
The larger vision of
Make in India,
Prime Minister Mr Narendra Modi’s
flagship programme, aimed at sur-
charging India’s manufacturing sector,
also encompasses the services sector in
its ambit. It was in recognition of the
immense importance of the services sec-
tor in India’s forward march as a global
economy and its contribution to India’s
growth in the last two decades that the
Government of India held the first ever
Global Exhibition on Services (GES) in
April this year in New Delhi. Called “The
India Opportunity”, the event presented
a slice of India’s services export prowess
to global investors. The second edition of
the event is now scheduled to be held in
February 2016.
KPMG India estimates that in the
backdrop of a reviving world economy
and trade and an expected increase in
demand for services especially from the
developed economies, coupled with an
expected average growth at 8.5 per cent
during FY15–FY20, the services sector
in India is beaming with optimism. It
also expects the sector to continue with
its rapid pace of growth. According to the
Department of Industrial Policy and Pro-
motion (DIPP), Government of India, the
country ranks 11th in the world in terms
of services GDP (2013) among the top 15
global economies. The share of India’s
services sector in the global services trade
is 3 per cent as compared to 4.6 per cent
for China. According to the Advance
Estimates (Directorate of Economics and
Statistics), in 2014-15, the services sector
grew at 10.6 per cent as compared to
9.1 per cent in 2013-14. DIPP adds that
India’s services sector has always served
the country’s economy well, accounting
for 52.7 per cent of the country’s gross
value added (GVA) at basic prices (cur-
rent prices) in 2014-15. The services trade
surplus as a percentage of GDP stood at
3.9 per cent in 2013-14, mainly owing to
growth in exports (receipts) of computer,
information, and telecommunications,
and other businesses services.
DIPP, as the nodal Department for the
Make in India
programme, has a major
role to play in pushing India’s services
manpower in
India by 2022
“India has the distinct
advantage of the
world’s youngest
potential to meet the
talent requirement of
other countries...”
A G Rao
Group Managing Director
ManpowerGroup India
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