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/blog/topic/web-3-0 ] :
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 ]
Ø Services
Export : the Saviour ……………………………………….[ 14 July 2022 ]