Friday, September 19, 2008

Service Sector and the Middle Class of India

The unprecedented fall of the great kings of investment banking, Lehman Brothers, is a great shock not only to Wall Street but also to the rest of the world. The sub prime crisis is still showing its impacts and no one knows till what time it will continue. The whole US economy is under recession. Even the respite of the skyrocketing oil prices is still unable to have its positive impact on the whole market scenario.

The inflation is causing havoc among common people. The commodity prices are increasing day by day. The worst hit by this will be the ones who were already fighting for two meals a day. Under these circumstances, central bank is revising various interest rates and taking necessary steps what needs to be done.

As middle class people, we always seek two things the most, first is Job and after that job security. Current market conditions may not seem conducive. Whatever happens in US is going to affect the rest of the world as “Dollar” is the main currency used worldwide for all financial transactions across the border and within many countries.

India can never escape from it. As we have seen, when Lehman Brothers filed bankruptcy, it echoed through the BPO segment of India and nearly 2500 in India lost their jobs. Our IT sector, the major job creator in the market and having excellent revenue, mainly works in providing service to outside firms. This service sector is yet the see the real repercussions of the recession in US. Till then what we can do is to keep our fingers crossed and let’s wait and see.

What I am trying to bring out here is to show the “dependency” mainly in our IT/ITES sector with the US market. We can’t even live without this sector as I have already said that is the ‘major job creator’. Everyone aware of this fact!!

The IT/ ITES sector came apropos when our country needed an upward lift to compete with rest of the world. But can we claim that India’s best brains are getting what they deserve from this sector? This is a very controversial question and someone will say ‘Yes’ and someone will ‘No”. I don’t want to go into this controversy. But one thing is true, India’s the ‘best’ brains deserve the ‘best’ things which cannot come very easily as the ‘most’ people in India is ‘Middle Class’. So everyone after a level of education always seek for job (which is the necessary step then).

But I was thinking of a time in future in which the best brains go for some kind of research and do something very miraculous for which the whole country as a whole can be benefited out of that. Our Education system instead of being ‘job oriented’, becomes ‘research oriented’. The opportunity becomes almost same for subject so that everyone can pursue their dreams without any hesitation.

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