Service marketing role in Indian economyGagan Gupta
The Service industry forms a backbone of Social and Economicdevelopment of a region. It has emerged as the largest and fastest growingsectors in the world economy, making higher contribution to the global outputand employment. Its growth has been higher than that of Agriculture andManufacturing sectors. It is a large and most dynamic part of Indian Economyboth in terms of employment potential and contribution to National Income.
The service sector as a determinant of economicAmarwaha
The growth of India’s services sector, its contribution to GDP, and its increasing share in trade and investment has drawn global attention. Unlike other countries, where economic growth has led to a shift from agriculture to industries, in India, there has been a shift from agriculture to the services sector. In India during pre reform period service sector was always considered as a residual sector and its growth merely a by –product of development in agriculture and industry and their supporting infrastructure services like irrigation, power and transport besides the normal expansion of state administration and social services .It includes transportation communication, trade, banking and insurance, real estate, business services, administration, defence and other services.
This paper provides an overview of the Indian services sector. It shows that services is the fastest growing sector in India, contributing significantly to GDP, GDP growth, trade and investment. India is a major proponent of liberalizing services both in the WTO and in its bilateral trade agreements. However, there are some concerns. Economic growth has slowed down. Growth in employment in services has not been commensurate with the share of the sector in GDP. A large part of the employment is in the non-corporate or unorganised sector, with limited job security.
The paper identifies a number of barriers faced by the services sectors and suggests policy measures, which, if implemented, will lead to inclusive growth, increased productivity, generate quality employment, increase trade and investment, and enhance India’s global competitiveness in services.
Marketing strategies for services sector by G.RekaPOLIKAIYOOR REKA
The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, as well as community, social and personal services. This paper attempts to define the service sector, particularly on marketing strategies in service sector
Service marketing role in Indian economyGagan Gupta
The Service industry forms a backbone of Social and Economicdevelopment of a region. It has emerged as the largest and fastest growingsectors in the world economy, making higher contribution to the global outputand employment. Its growth has been higher than that of Agriculture andManufacturing sectors. It is a large and most dynamic part of Indian Economyboth in terms of employment potential and contribution to National Income.
The service sector as a determinant of economicAmarwaha
The growth of India’s services sector, its contribution to GDP, and its increasing share in trade and investment has drawn global attention. Unlike other countries, where economic growth has led to a shift from agriculture to industries, in India, there has been a shift from agriculture to the services sector. In India during pre reform period service sector was always considered as a residual sector and its growth merely a by –product of development in agriculture and industry and their supporting infrastructure services like irrigation, power and transport besides the normal expansion of state administration and social services .It includes transportation communication, trade, banking and insurance, real estate, business services, administration, defence and other services.
This paper provides an overview of the Indian services sector. It shows that services is the fastest growing sector in India, contributing significantly to GDP, GDP growth, trade and investment. India is a major proponent of liberalizing services both in the WTO and in its bilateral trade agreements. However, there are some concerns. Economic growth has slowed down. Growth in employment in services has not been commensurate with the share of the sector in GDP. A large part of the employment is in the non-corporate or unorganised sector, with limited job security.
The paper identifies a number of barriers faced by the services sectors and suggests policy measures, which, if implemented, will lead to inclusive growth, increased productivity, generate quality employment, increase trade and investment, and enhance India’s global competitiveness in services.
Marketing strategies for services sector by G.RekaPOLIKAIYOOR REKA
The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, as well as community, social and personal services. This paper attempts to define the service sector, particularly on marketing strategies in service sector
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
List of Profitable Business Ideas in Services Sector,....Ajjay Kumar Gupta
List of Profitable Business Ideas in Services Sector, Hospitality Sector, Education Sector, Healthcare Industry, Leisure and Entertainment Industry.
The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.
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India’s strong consumption story relies on its demographic structure, which, at this
point in time, is highly favourable compared to most other emerging nations. As per
the UN population statistics, this favourable demographic dividend will last for another
25–30 years. Before that, most other emerging nations would have already begun to
witness a slowdown in the growth of young (working-age) population.
The ensuing benefits with regard to the rising income and household spending would
provide a significant boost to the consumption-driven growth story of India. A glimpse
of the changing pattern of India’s consumption is already visible in the breakdown
of private final consumption spending data provided by the government. There is
a marked increase in spending on lifestyle products and services such as hotels,
mobiles, transportation and other miscellaneous goods. As against that, spending on
essentials has only remained stable.
International retailers are well aware of these benefits that the Indian economy offers.
Barring few legislative challenges that could be tackled through the policy reforms and
opening up of the retail sector, retailers have often expressed their intention to enter
and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s
Global Retail Development Index 2012, where India ranks as the fifth most attractive
retail market for international retailers. The retail sector is a significant contributor to India’s economic activity. Though a
direct measurement of the retail sector is difficult to derive through government
statistics, the trade, hotels and restaurant sectors come close to giving us an
estimate of its contribution. That component, in which retail (both organised and
unorganised) is the dominant activity, accounts for around 18% of India’s GDP.
Within the services sector of India, this component is the largest contributor
to the economy. Many institutions, however, may not agree with this possibly
understated measurement of the retail sector, as it may not accurately account
for the unorganised sector. For instance, as per the estimates of the Associated
Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail
reports of 2012, the contribution of both organised and unorganised retail stood
at 22% of GDP. This would mean that Indian retail sector size should measure
closer to INR 19.2 trillion in 2012. Leading research institutions such as AT
Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over
the next three–five years as against a 12%–13% nominal growth of India’s GDP
estimated by the International Monetary Fund (IMF). Going by that logic, the retail
sector should reach a size of INR 34 trillion by 2016. This is a significant growth.
The sector is also an important contributor towards the socioeconomic well-being
of the economy as it employs close to 9.4% of India’s labour force, as per the
association.
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Similar to Epgp (one year) 2009-10_mos_ assignment_#1_18jan10 (20)
1. 1. Trace the performance of service sector in India’s economy over the last decades. Analyze the
importance of this sector by discussing the role of services in contributing to GDP, employment
generation and other socio-economic dimensions.
Service sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing
sector globally contributing more to the global output and employing more people than any other sector.
The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more
demand for intermediate and final consumer services. Availability of quality services is vital for the well being of the
economy.
In advanced economies the growth in the primary and secondary sectors are directly dependent on the growth of
services like banking, insurance, trade, commerce, entertainment etc.
Indian Service Sector - In alignment with the global trends, Indian service sector has witnessed a major boom and is
one of the major contributors to both employment and national income in recent times. The activities under the
purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and
business services, community, social and personal services come within the gambit of the service industry.
One of the key service industry in India would be health and education. They are vital for the country’s economic
stability. A robust healthcare system helps to create a strong and diligent human capital, who in turn can contribute
productively to the nation’s growth.
Post Liberalization - The Indian economy has moved from agriculture based economy to a knowledge based
economy. Today the IT industry and ITE'S industry are the dominant industry in the service sector. Media and
entertainment have also seen tremendous growth in the past few years.
Subsectors
Information Technology Industry
The Information Technology industry has achieved phenomenal growth after liberalization. The industry has
performed exceedingly well amidst tough global competition. Being knowledge based industry; India has been able to
leverage the global markets, because of the huge pool of engineering talent available and the proficiency in English
language among the middle class.
ITES sector
The ITES sector has also leveraged the global changes positively to emerge as one of the prominent industries.
Some of the services covered by the ITES industry would be:
• Customer interaction services -Non voice and Voice.
• Back office, revenue accounting, data entry, data conversion, HR services.
• Medical Transcription.
• Content development and animation.
• Remote education, market research and GIS
Retailing
Prior to liberalization, India had one of the most underdeveloped retail sectors in the world. After liberalization the
scenario changed dramatically. Organized retailing with prominence on self service and chain stores has changed the
dynamics of retailing. In most of the tier I and tier II cities supermarket chains mushroomed, catering to the needs of
vibrant middle class. This indirectly contributed to the growth of the packaged food industry and other consumer
2. goods.
Financial Services-Banking And Insurance - Prior to liberalization these two sectors were controlled and regulated
by the government. Nationalized banks and insurance companies had a firm grip over the market. After liberalization
the banking and insurance domain opened up for private participation.
Banking Sector - The three major changes in the banking sector after liberalization are:
• Step to increase the cash outflow through reduction in the statutory liquidity and cash reserve ratio.
• Nationalized banks including SBI were allowed to sell stakes to private sector and private investors were
allowed to enter the banking domain. Foreign banks were given greater access to the domestic market, both
as subsidiaries and branches, provided the foreign banks maintained a minimum assigned capital and
would be governed by the same rules and regulations governing domestic banks.
• Banks were given greater freedom to leverage the capital markets and determine their asset portfolios. The
banks were allowed to provide advances against equity provided as collateral and provide bank guarantees
to the broking community.
Insurance Sector - The Insurance Regulatory and Development Authority Act 1999 (IRDA Act) allowed the
participation of private insurance companies in the insurance sector. The primary role of IRDA was to safeguard the
interest of insurance policy holders, to regulate, promote and ensure orderly growth of the insurance industry. The
insurance sector could invest in the capital markets and other than traditional insurance products, various market link
insurance products were available to the end customer to choose from.
The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastest growing economy in
the world. India’s GDP has touched US$1.25 trillion. The crossing of Indian GDP over a trillion dollar mark in 2007
puts India in the elite group of 12 countries with trillion dollar economy. The tremendous growth rate has coincided
with better macroeconomic stability. India has made remarkable progress in information technology, high end
services and knowledge process services.
However cause for concern would be this rapid growth has not been an inclusive in nature, in the sense it has not
been accompanied by a just and equitable distribution of wealth among all sections of the population. This economic
growth has been location specific and sector specific. For e.g. it has not percolated to sectors were labor is intensive
(agriculture) and in states were poverty is acute (Bihar, Orissa, Madhya Pradesh and Uttar Pradesh).
Though India has the second highest growth rate in the world, its rank in terms of human development index (which is
broadly used has a measure of life expectancy, adult literacy and standard of living) has gone down to 128 among
177 countries in 2007 compared to 126 in 2006.
Indian GDP –Trend Of Growth Rate
1960-1980 : 3.5%
1980-1990 : 5.4%
1990-2000 : 4.4%
2000-2009 : 6.4%
Contribution of Various Sectors in GDP
3. The contributions of various sectors in the Indian GDP for 1990-1991 are as follows:
Agriculture: - 32%
Industry: - 27%
Service Sector: - 41%
The contributions of various sectors in the Indian GDP for 2005-2006 are as follows:
Agriculture: - 20%
Industry: - 26%
Service Sector: - 54%
The contributions of various sectors in the Indian GDP for 2007-2008 are as follows:
Agriculture: - 17%
Industry: - 29%
Service Sector: - 54%
It is great news that today the service sector is contributing more than half of the Indian GDP. It takes India one step
closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the Indian GDP.
The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to
boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and
hence the GDP.
4.
5.
6. 2. Also analyze the role of services in the economies of leading developed countries.
7.
8. 3. Write a critical commentary on the society and culture of India. How do you think these affect
the business in India? What is the expectation of Indian consumer from services?
Regionalism, religion, language and caste are all factors that need to be taken into account when doing
business in India. Behaviour, etiquette and approach are all modified depending on whom you are
addressing and the context in which they are being addressed. In such a richly diverse and complex
country as India it is difficult to impart generic conclusions that can be used by those doing business there.
However, most of those doing business in India will do so in cities such as Delhi, Mumbai, Bangalore and
Hyderabad and with a particular socio-economic class.
When a foreigner, particularly a Westerner, who is accustomed to a more homogenous, industrial,
‘national’ culture, comes to India the unique, contradictory, in many ways paradoxical, and colourful
diversity is probably one of the first things that he becomes aware of – and finds or does not find
attractive. Most Indians come across as friendly, hospitable and helpful, and try to make foreigners
feel at home. Nevertheless, the initial encounter with Indian culture also incorporates many elements
of culture shock.
There are certainly many aspects of Indian culture that a foreigner would find disagreeable. These are
not only obvious things like the tropical climate, made worse due to the greenhouse effect and global
warming; these are also the dirt, filth and slums even in wealthy cities like Mumbai and Bangalore;
the chaotic traffic, bad, potholed roads (the roads that could better be named “directions”) in most
cities and towns with traffic rules more in abeyance than observance.
Further hassle is encountered when one actually tries to get down to business. This can range from
minor to major power outages that happen regularly unless one has access to a 24-hour power back-
up office, to trains not running on time, to the overcharging by autorickshaw drivers and buses having
a schedule that remains a mystery. Adding to the stress is the fact that every activity seems to take at
least double the time that it takes in one’s own country.
• A sound knowledge of India's cultural practices and business etiquettes is necessary for any trade or
business venture within the country. A proper understanding of culture and business etiquette would not
only demonstrate a respect for India but will also create a feel good factor amongst the prospective clients.
• In India guests are treated with utmost respect and courtesy. International travelers can expect to enjoy the
Indian hospitality. At the same time culturally and as a mark of politeness, Indians have difficulty in saying
no, this could be a stumbling block in negotiations and in closing contracts.
• The notion of time, time management, punctuality is still an anathema in India. It is more to do with the
mindset and ingrained in the Indian culture. It would not be surprising if meetings are postponed, re
scheduled, cancelled or organized at a very short notice.
• The proficiency over the English language for the average middle class is commendable. Official
communication-letter faxes, emails are generally received without any hitch, but it would be prudent to cross
check if the transmission has reached the receiver.
9. • Bureaucratic hurdles and a laidback approach to work in the government circles could result in delays in
processing, overload of paperwork and a general lack of confidence in the system. Therefore immense
patience is very much necessary for any business transaction in India.
• In India, Companies follow the hierarchical system and decision making is usually from the top to bottom. It
could at times be time consuming, International companies show respect to this. The lack of infrastructure
and inadequate supply chain management can also act as bottleneck for foreign investment.
1. How do you think is the Indian businessperson different and distinct in managing his/her
business? Relate this to the local cultural dimensions.
2. Comment on the quality of services in India. Relate it to the culture, socio-economic conditions
and tradition of the land.
Customer expectations in India - in India described their expectations as higher now than one year ago; 52 %
globally and 85 % in India described their expectations as higher now than five years ago.
In mature markets for customers in general, the bar has been raised across industries and have emerged into
different service levels. So the customers are driven by knowledge of customer service representative, technical
service availability and then price.
Indian respondents were least satisfied with their ability to resolve questions or issues on their own without speaking
to a service agent. They are most frustrated with having to contact a customer service multiple times for the same
reason and being placed on hold for a long time. Indian respondents along with those in Brazil and China were far
more likely than those in other countries to expect much better service when they spend more or purchase more
often.
Indians were most likely to consider customer service as the main factor for choosing a new provider after switching
from an established one (cited by 79%), while convenience was the second-most popular factor (named by 69%).
And for the largest percentage of Indians (about 79%), their preference would be to receive faster service. Indian
consumers were the most likely (about 49% in our survey) to strongly agree that the use of technology in customer
service has significantly improved service levels.
In India, calling for assistance is by far the preferred method for accessing customer service, cited by 85% of
consumers.
The second-most popular method, sending an email, was named by 68%, followed by getting information from the
company’s website (47%) and going to the company’s place of business (31%). When they have a bad customer
service experience, Indian consumers are among the most likely of those surveyed to say they will ask to speak to a
supervisor (37%) and the most likely to send a formal complaint to the company (21%).
http://www.financialexpress.com/news/customer-expectations-in-india-are-rising-fast/