India Now - page 23

At ~US$ 90 billion,
computer and IT services
account for close to half
of service exports.
structural changes within the education
system, especially tertiary education,
along with infrastructural develop-
ment across both tier 1 and tier 2 cities.
Mr Wahi though feels that with a large
educated and qualified labour pool, and
a significantly large English speaking
population, service providers in India
can effectively cater to the western world
(through outsourced services).
However, India now needs to effec-
tively market the services and skill sets of
Indian service providers among potential
international clientele. “This can create
a virtuous cycle of demand creation and
fulfillment and open up the opportunity
of service exports,” Mr Bandyopadhyay
explains. Mr Rao of ManpowerGroup
too feels that India is well equipped
to tackle the emerging market needs.
“India has the distinct advantage of the
world’s youngest demographics, the
potential to meet the skills needs of other
countries and also cater to
its own demand for skilled
manpower. This could be the
strongest competitive advan-
tage that India will have in
the years to come,” he says.
According to Manpower-
Group’s analysis, most of
the international job oppor-
tunities for Indians are avail-
able in Middle East, North
America and North Africa.
Bigger career prospects are
open for Indians with exper-
tise in countries like Canada,
Singapore, Oman, Kuwait,
Qatar, Germany, France,
Belgium, Denmark, Dubai,
Australia, etc. Mr Rao is
confident that while manu-
facturing will add another
dimension to India’s growth
story, “the services sector will
continue to be strong, given
its robust contribution in the
last 15 years and enormous
potential to drive growth by
meeting the aspirations of a
growing consuming class.”
The Prime Minister has
been indeed visionary in his outlook, as
he has voiced the need to map India’s
regional talent to match it to global trends
and demand. Given India’s diversity, to
reap its demographic dividend, such an
exercise “would help develop those spe-
cific skills which are strong in the HR
pool of one region or regional cluster,
to take advantage of the requirement of
the global business,” says Mr Wahi. He
quotes a recent MeritTrac survey focused
on the BPO industry to buttress his point.
The survey found that candidates from
eastern states of India have better voice
clarity, accent neutrality and fluency com-
pared to candidates from other parts of
India. Apparently, once an existing talent
pool has been identified, it can be trained
to fulfill a need. Mr Rao adds, “By 2022,
India will have excess manpower of 46
million. If we can develop the skills of
these workers, then it would enable us to
place India quite differently in the global
arena.” India’s manufac-
turing sector, which is
clustered in nature, is at
a turning point. Indian
manufacturing resides in
its small towns, take for
instance, Surat (a hub of
diamonds), Tirupur (tex-
tiles), Chakan (auto and
auto ancillaries), Neemra-
na (Japanese manufactur-
ing) and Baddi (pharma).
“By developing these
hubs and mapping their
strengths, the country can
create multiple layers of
services and strengthen
trade relations to meet the
requirements of the global
community,” says Rao.
Services sector also stands to gain big
from the liberalisation of the FDI regime
in the country. As it is, services was the
largest recipient of FDI in the country
accounting for close to 18 per cent of
India’s cumulative FDI in the period
2000–2014, as per KPMG estimates.
Now in the light of the recent thrust to
FDI and the incentivisation provided
under the
Make in India
initiative, ser-
vices sectors such as IT-BPM, tourism
& hospitality projects, as well as certain
segments in aviation, where 100 per
cent FDI is permitted under the auto-
matic route, stand to gain big. Other
initiatives like the Services Export from
India Scheme (SEIS), which replaces
the Served from India Scheme (SFIS),
provide incentives in terms of duty credit
for service providers located in India,
regardless of their origin. “This is a posi-
tive step as it will provide greater incen-
tive for foreign companies to offshore or
operate their service segments to India,”
says Mr Wahi.
Services@India or Opportunities@
India—It’s Advantage India as it readies
to extend better services to the world.
“Indian financial
services sector
is recognised
as effective and
well regulated.
Our systems are
Sudip Bandyopadhyay
Destimoney Securities
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