Exploring Opportunities and Prospects in Indian Service Sector
'Challenges and Opportunities in Service Sector', Conference, MS Ramaiah Institute of Technology, Visveswaraya Technological University, 2011
11 Pages Posted: 27 Apr 2011
Date Written: April 26, 2011
The economic cycles are complex in nature but they do play an important role in explaining the process of development in a region. If an event occurs, some communities may benefit and some may lose their advantageous position and many times it may go even worse. Primary, secondary and tertiary sector are like instruments for a government that helps taking the economy to a new elevated level. To do this, a strategic vision and an attitude to learn from previous mistakes should be developed by the governments in different countries. The strategic vision includes planning; implementing policies and also the most important of all is monitoring them. Monitoring is very much necessary for getting the feedback and learning from mistakes also it helps to improvise the policies by making amendments. India though having an enormous potential is facing hurdles in escalating the growth rate.
Among many economists Baumol has already pointed out the need for reducing human resources flow into sectors that are not productive. Productivity is the main element of every sector through which final contribution to the economy, upliftment of the poor in a nation happen. If a sector doesn’t have faster product/service outputs per minute, it cannot generate enough profit margins to increase the personal income of the people. Then Baumol questions the very ability of these companies to lift the purchasing power of people when large numbers of people are employed by these sectors. On the macro view this will definitely withhold the economic growth less productivity in the business activities. This paper highlights the impact of Indian government policies on economy and suggests the possible steps to improve on the prevailing platform. An attempt of calculating indices has also been done to develop an index number for growth of service sector.
Keywords: Keywords: Service sector, Government, economic, strategic vision
JEL Classification: E60, E61, E66, F41, F43, N15, N25
Suggested Citation: Suggested Citation