Services Export : the Silver Lining
Context :
Govt bets high services export can trim CAD / TNN / 17 Nov 2022
Extract :
The government is hoping to narrow the current account deficit due to a continued increase in SERVICES EXPORTS, which rose over 40 % to $ 28.6 billion in October, according to official data
India has traditionally had a trade surplus on the SERVICES front , which has helped narrow the overall trade deficit.
What is providing confidence to the government is a pick-up in SERVICES EXPORT at a time when merchandise exports are slowing down
During the first half of the current financial year, SERVICES EXPORTS have increased 31 % to $ 181.4 billion, while imports were up 37 % at over $ 106 billion
My Take :
Dear Shri Ashwini Vaishnawji – Shri Rajeev Chandrasekharji – Shri Piyush Goyalji :
Even as we continue our efforts to make India a Manufacturing Hub for entire world, I urge you to :
Ø Leveraging our Engineering Talent …………………….13 Dec 2018
Extract :
But , if “ Manufacturing Sector “ and “ Service Sector “ were two horses in the
GDP race , I would bet on the “ Service Sector “, especially from the following
view-points :
# “ Capital Investment per Job created “ would be much lower ( may be 10
% of Mfg. Sector ? )
# Jobs created would be much higher ( may be 5 times of Mfg sector ? )
# Time ( to create those jobs ) would be much shorter ( months instead of
years )
# Export of “ Services “ are much easier than export of “ Goods “
# Quality of our “ Services “ are comparable – or even better – than from
other countries
# We will , soon , have the desired quality / quantity of Internet connectivity ,
all over India
# We are turning out thousands of Graduates each year though some need “
Skilling “
# Salaries of our Engineers are 20 - 25 % of similar hires in USA – EU – Japan
– UK etc
Ø Brain Inc 2.0 ………………………………………..21 Aug 2017
Extract :
Now consider this :
· By employing 5 lakh engineers , India’s “ Tech R&D Firms “ earned $ 22 billion
. That works to a billing of $ 44,000 per man-year of R&D ( Export of Services )
I presume that the “ Manpower Cost “ constitute approx. 50 % of Billing Rate
( rest being OVERHEADS and MARGIN )
· Hence , Indian R&D firms must be paying an average of $ 22,000 per year to
its employees ( approx. Rs 1.2 lakh per month )
{ Refer : Employee Expenses as %age of Sales / 05 July 2022 }
· As against this , both , Indian as well as American firms pay ( on an average )
, $ 88,000 per year to H1 B visa holders
With this kind of “ Cost Advantage “ , is there a possibility to do better than
the projected earnings of $ 40 billion in 2020 ?
It is high time our Policy Makers launch a new initiative ( of Export of
Intellectual Property ) , called :
INDIA : the BRAIN FACTORY of THE WORLD
During an Interview with Business Line ( 16 April 2016 ) , the then CEO of Infosys
, Vishal Sikka , said :
“ We have to re-imagine the notion of services “
In support of my belief in the potential re-imagination of this “ Service Sector “ ,
allow me to quote Peter Diamandis
{ https://www.diamandis.com/
The Spatial Web is also giving way to “virtual company headquarters” and
completely virtualized companies, where employees can work from
home or any place on the planet
· Delocalize with VR, and you can now hire anyone with Internet access ( right
next door or on the other side of the planet )
· Web 3.0 is changing the way we work, where we work and who we work with.
=============================
With regards,
Hemen Parekh
hcp@RecruitGuru.com / 17 NOV 2022
Related Readings :
Ø Can Indian IT Re-invent itself ? ………………………………….[ 03 Feb 2017 ]
Ø Will Holograms beat H1B Visa Ban ? …………………………..[ 31 Jan 2017 ]
Ø THANK YOU FOR YOUR VISION …………………………………..[ 24 Jan 2017 ]
Ø Idea whose time has come ?............................. ...... [ 16 Feb 2017 ]
Ø Wormholes Across the World ? ………………………………….. [ 03 Mar 2017 ]
Ø Ready to be Ridiculed …………………………………………………..[ 23 Aug 2017 ]
Ø Vindication must wait …………………………………………………[ 18 Mar 2018 ]
Ø Betting on BPOs ? …………………………………………………………[ 19 Dec 2018 ]
Ø India BPO Promotion Scheme : V 2.0……………….. [ 11 Apr 2018 ]
Ø Gaining Ground : Virtually…………………………………………… [ 01 Mar 2021 ]
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