India is emerging as a superpower due to strong economic growth, large population, and investments in technology and infrastructure. India's GDP growth rate of 7.57% outpaces China's 6.9% rate, and its population of 1.31 billion is second only to China. The government is promoting growth through initiatives like "Make in India" which aims to develop 25 sectors. Automobiles, food processing, and chemicals have seen significant investments and growth. While India still faces challenges like skills gaps between education and employment, privatization and training programs aim to strengthen the economy and workforce to solidify India's rise.
10. CHINA INDIA
GDP Growth Rate -
6.9%
7.57%
GDP -
China's GDP is $10.4 trillion which is the second highest
GDP in the world
India's GDP is $2.07 trillion which ranks 8th in the world
Unemployment Rate-
4.7% 3.6%
Population-
1.37 billion
1.31 billion
11. China India
Rural population
44.39% 67.25%
Rural population growth
annual %age
-2% 1%
Urban population-
56% 32%
Adult literacy rate-
96% 72.23%
12. GOVERNMENT SECTOR
Under Make in India initiative,
the government has identified 25
sectors of various industries that
show tremendous potential to
grow
AUTOMOBILE
FOOD PROCESSING
CHEMICALS
13. AUTOMOBILE
• The automobile and auto component sector in India is the 6th largest in the
world, having over 29 million people employed
• Over the course of last six years, the annual automobile production has
jumped by nearly 1.4 times while turnover of the automobile industry has
risen by 1.3 times
14. What is the Government doing about it?
Since the Government allowed 100% FDI through an automatic approval route
to the automobile sector that is already contributing 7% to the Gross Domestic
Product (GDP), it seems natural to expect the sector to grow significantly.
15. FOOD PROCESSING
• The Indian food processing industry accounts for 32 per cent of the
country’s total food market, one of the largest industries in India and is
ranked fifth in terms of production, consumption, export and expected
growth.
• It contributes around 14 per cent of manufacturing Gross Domestic Product
(GDP), 13 per cent of India’s exports and 6 per cent of total industrial
investment. Indian food service industry is expected to reach US$ 78 billion
by 2018.
16. What is the Government doing about it?
• Food Processing is another sector where the government allows 100 per cent
FDI through the automatic approval route. Due to this, many foreign
companies are now looking to enter and expand their markets in India
• Recently, 100% FDI has been permitted under government approval route
for trading, including through e-commerce, in respect of food products
manufactured or produced in India. Food processing sector in India offers
ample investment opportunities in food processing equipment, cold storage
units & warehouses, contract farming, mega food parks etc.
17. CHEMICALS
• India is currently the third largest producer of chemicals in Asia while being
sixth globally. The chemicals industry accounts for 2.1% of the nation’s
GDP with estimated revenues of USD 144 billion
• Major companies are expanding their business in the sector. Asian Paints is
already investing USD 300.63 million to build the world's largest paint
manufacturing plant at Mysore, Karnataka. The proposed plant will have the
capacity of 600,000 kilolitres per annum, employing 900 people directly and
4,500 people indirectly
18. What is the Government doing about it?
• The government has launched the Drafts National Chemical Policy, which
aims to increase chemical sector’s share in country’s GDP
19. PRIVATE SECTOR
The Privatization movement
The move towards privatization has gained
momentum since 70’s. The following are
usually mentioned reasons
1 The emergence of conservative
government in principal industrial countries
2 The emergence of multinational entities
3 Technological changes
20. 4 Emergence of local capital market and entrepreneurship
5 Dissatisfaction with performance of public sector ( 1960’s &1970’s saw
emergence of literature pointing out the inefficiency of Import substitution
policies and gave rise to question that why government Should intervene in the
market place when it does not have any information about market players)
21. REASONS FOR INDIAN PRIVATIZATION
The main reason for increased efficiency gain as a result of privatization are
attributed to
•Less political interference in decision making
• Staff remuneration is more closely linked to productivity and profitability
• Firm are exposed to financial market discipline as opposed to government
support
• Firm’s cost reducing effort are higher under competitive private ownership
22. Key obstacle to privatization
1.Lack of strong and high level political commitment to the privatization program
2.Inappropriate design of privatization strategy( eg. In term of scope, technique
sector and institutional capability of the government)
3.Unclear and weak institutional frame work- decentralized or centralized. ( ministry
and provincial level)
4.Lack of proper preparation of enterprise for privatization or divestiture eg.
Accounting and auditing , treatment of losses, social and environmental safety net
23. 5.Insufficient transparency and flexibility in term of the method of
privatization, balancing, ownership, and control ( corporate governance)
6.Vested interest of manager, employees and customer (vii) Lack of
appropriate legal frame work (eg. Property right, foreign ownershipbankruptcy
law ) (viii) Underdeveloped capital markets
24. WAYS OF PRIVATIZATION
• DISINVESTMENT
• CONTRACTING
• FRANCHISING
• PREMITING PRIVATE SECTOR ENTER INTO PSU RESERVED
AREA
• LIQUIDATION
• LEASING
26. SKILL GAP
Skill Gap is the difference in the skills
required on the job and the actual skills
possessed by the employees
27. Cause and effect
CAUSE EFFECT
Poor yield from automated job match
programs
YAWNING EMPLOYABILITY
Reluctance to provide training YAWNING EMPLOYABILITY
Inadequate compensation YAWNING EMPLOYABILITY
The growing need for soft skill YAWNING EMPLOYABILITY
28. Bridging the Gap
• Shortage of skilled talent pool –The primarily reason for
this is human capital flight or brain drain. Every year
students are picked up from top Indian institutes for high
flying dollar and euro jobs.
• Catch them early- The best way to overcome the crunch
in the talent pool is that organizations’ should hire more
qualified fresher's and train them with a long term
perspective. This will ensure that organizational goals are
synergized with individual ambitions.
29. More than salary- Employees built their perception about a healthy
organisation on the basis of its overall work culture and the value the HR
initiatives add to it. If these initiatives reflect that the organisation “cares”, they
will surely think twice before moving on.
Rewards and promotions- Good work and good performance should not
only be encouraged but also acknowledged and rewarded. However it is a
double edged knife, in the sense that the reward given to a non deserving
person, surpassing a proper system can lead to demoralization of many.
30. In today’s highly volatile and competitive
business environment, technology, trends
and human force are in a state of constant
flux. It is therefore important that HR
initiatives are ever evolving and apt for the
challenges that lay ahead.
