India has earned itself the “reputation of an IT superpower” as the GDP (gross domestic product) ... more India has earned itself the “reputation of an IT superpower” as the GDP (gross domestic product) growth currently is mainly driven by services sector and within services sector by IT (information technology) and ITES (information technology enabled services) ...
India emerged as one of the fastest growing economies of the world during the 1990s because of th... more India emerged as one of the fastest growing economies of the world during the 1990s because of the spectacular dynamism shown by the services sector. India's services sector has been burgeoning fast and one of the major driver's of the growth of services sector is information technology (IT) and information technology enabled services (ITES). It is well documented in literature that IT impacts growth by different channels. In this study we try to empirically verify the question: Can IT and ITES be an engine of growth? Using micro-level data of 100 households of 20 IT and ITES firms along with secondary data we tried to estimate the extent of indirect employment generation at macro level and the share of IT and ITES in total employment and total value added. According to our study, one job for skilled professional employed in IT and ITES spins off jobs for 0.48 semi-skilled, low skills or unskilled workers. As per our estimates, the 16 lakh workers who are expected to be directly employed in IT sector in the FY 2008 would generate secondary employment for 7,68,000 people which would constitute 0.16 % of total employment. However, the share of consumption expenditure of 16 lakh professionals would be 20% of total value added. Assuming the consumption expenditure of the IT and ITES workers and total value added to be the same/constant when we tried to assess the contribution of consumption expenditure of 2.3 million workers (who are projected to be directly absorbed by IT sector by to total value added it comes out to be 29% of total value added. The study says that the proportion of IT-ITES in total employment may be small but its contribution to total value added is still very high. Indeed IT and ITES can be an engine of growth in India's economy by way of generating demand impulses in the economy as has been hypothesized and shown through the present study. Keeping in view the contributions of this sector and its huge untapped potential as evident from the present study and various other studies, there is a need for introduction and implementation of policy initiatives to address the challenges faced by this sector and to sustain the growth driven by the services sector.
In a knowledge-intensive world driven by information technology, primary education is a must but ... more In a knowledge-intensive world driven by information technology, primary education is a must but the importance of higher education cannot be ignored. This current era of globalization has offered immense opportunities. But people must have the necessary knowledge, skills, capacities and capabilities to seize those opportunities. Herein lays the role of education and especially higher education in building up and improving human capital. Since the economic growth of India in recent years is driven primarily by services sector and within services sector by IT and ITES the sustainable development of higher education is not an option but imperative. In this light, the paper raises the following questions: Where does India's higher education stand today? What are the challenges confronting this sector? And what are proposed reform measures in this sector? The paper concludes that there is a serious mismatch between demand and supply in higher education sector. It is imperative therefore to enhance Indian talent pool by reforming higher education system to maximize the potential of IT and ITES on the one hand and to catalyze the country's growth driven by services sector on the other. The expansion of the higher education sector and improvement in its quality can assist India in avoiding the unemployability of graduates on the one hand and the phenomenon of 'missing teachers' on the other. In addition it can ensure inclusive growth by making higher education accessible and affordable. India's Eleventh Five Year Plan is aiming at enhancing public spending, encouraging private initiatives and initiating long major institutional and policy reforms to bring about positive changes in India's education system. The outcomes will depend upon political commitment and good governance.
India has earned itself the “reputation of an IT superpower” as the GDP (gross domestic product) ... more India has earned itself the “reputation of an IT superpower” as the GDP (gross domestic product) growth currently is mainly driven by services sector and within services sector by IT (information technology) and ITES (information technology enabled services) ...
India emerged as one of the fastest growing economies of the world during the 1990s because of th... more India emerged as one of the fastest growing economies of the world during the 1990s because of the spectacular dynamism shown by the services sector. India's services sector has been burgeoning fast and one of the major driver's of the growth of services sector is information technology (IT) and information technology enabled services (ITES). It is well documented in literature that IT impacts growth by different channels. In this study we try to empirically verify the question: Can IT and ITES be an engine of growth? Using micro-level data of 100 households of 20 IT and ITES firms along with secondary data we tried to estimate the extent of indirect employment generation at macro level and the share of IT and ITES in total employment and total value added. According to our study, one job for skilled professional employed in IT and ITES spins off jobs for 0.48 semi-skilled, low skills or unskilled workers. As per our estimates, the 16 lakh workers who are expected to be directly employed in IT sector in the FY 2008 would generate secondary employment for 7,68,000 people which would constitute 0.16 % of total employment. However, the share of consumption expenditure of 16 lakh professionals would be 20% of total value added. Assuming the consumption expenditure of the IT and ITES workers and total value added to be the same/constant when we tried to assess the contribution of consumption expenditure of 2.3 million workers (who are projected to be directly absorbed by IT sector by to total value added it comes out to be 29% of total value added. The study says that the proportion of IT-ITES in total employment may be small but its contribution to total value added is still very high. Indeed IT and ITES can be an engine of growth in India's economy by way of generating demand impulses in the economy as has been hypothesized and shown through the present study. Keeping in view the contributions of this sector and its huge untapped potential as evident from the present study and various other studies, there is a need for introduction and implementation of policy initiatives to address the challenges faced by this sector and to sustain the growth driven by the services sector.
In a knowledge-intensive world driven by information technology, primary education is a must but ... more In a knowledge-intensive world driven by information technology, primary education is a must but the importance of higher education cannot be ignored. This current era of globalization has offered immense opportunities. But people must have the necessary knowledge, skills, capacities and capabilities to seize those opportunities. Herein lays the role of education and especially higher education in building up and improving human capital. Since the economic growth of India in recent years is driven primarily by services sector and within services sector by IT and ITES the sustainable development of higher education is not an option but imperative. In this light, the paper raises the following questions: Where does India's higher education stand today? What are the challenges confronting this sector? And what are proposed reform measures in this sector? The paper concludes that there is a serious mismatch between demand and supply in higher education sector. It is imperative therefore to enhance Indian talent pool by reforming higher education system to maximize the potential of IT and ITES on the one hand and to catalyze the country's growth driven by services sector on the other. The expansion of the higher education sector and improvement in its quality can assist India in avoiding the unemployability of graduates on the one hand and the phenomenon of 'missing teachers' on the other. In addition it can ensure inclusive growth by making higher education accessible and affordable. India's Eleventh Five Year Plan is aiming at enhancing public spending, encouraging private initiatives and initiating long major institutional and policy reforms to bring about positive changes in India's education system. The outcomes will depend upon political commitment and good governance.
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Papers by Seema Joshi