Dissertation

On
LATEST TRENDS
INDUSRTY

AND

TECHNOLOGY

IN

SERVICE

(Submitted in partial fulfillment of the requirement for the award of

degree of
(BACHELOR OF COMMERECE)

AMITY UNIVERSITY
HARYANA

SUBMITTED TO:
BY:
MRS. DEEPIKA DHAMIJA
JHANGU

SUBMITTED
KARTIK
BCOM(HONS)

6TH SEM
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DECLARARTION
I KARTIK, hereby declare that the work presented here is genuine
work. This is done originally by me and has not been published or
submitted elsewhere for the requirement of a degree programme. Any
literature, data or works done by others and cited within this dissertation
has been given due acknowledgement and listed
in the reference section.

Signature

Date

ACKNOWLEDGEMENT
My Synopsis Report preparation schedule has been an excellent learning
experience. I feel it of utmost importance to acknowledge the
contribution of my guide MR.SHIV SWAROOP JHA without her
support and guidance this research would not have been possible.
I am indebted to MRS.VIDHI BHARGAVA, HEAD OF
DEPARTMENT for showing me right direction in the course of the
project. I am also thankful to her for finding time from her tight schedule
and helping me in various stages of the project right from arranging data
to doing data analysis.

Executive Summary
The services sector now accounts for over 70% of total employment and value
added in OECD economies. It also accounts for almost all employment growth in
the OECD area. But despite its growing weight, productivity growth in services
has been slow in many OECD countries and the share of the working-age
population employed in services remains low in many countries. If policy makers
wish to strengthen economic growth and improve the foundations for the future
performance of OECD economies, the services sector will need to do better. But
strengthening growth performance is not the only challenge facing policy makers;
OECD countries are also confronted with the growing globalization of services and
manufacturing and with rapid technological change. This has raised doubts about
the capacity of OECD economies to create new jobs, while at the same time
offering new opportunities for international trade and investment. Addressing these
challenges and strengthening the potential of services to foster employment,
productivity and innovation will need to build on sound macroeconomic
fundamentals and involve a combination of structural policies. The OECD report
on services encourages policy makers to take action in the following areas:
Open domestic services markets to create new job opportunities and foster
innovation and productivity.
Further regulatory reform of services markets will create fresh opportunities for
firms to develop new services, meet emerging global demands and increase
employment. It will also increase the incentives for companies to innovate and
improve productivity growth. While much progress has been made in opening
services markets, further steps are needed, e.g.in reducing the degree of public
ownership in competitive industries such as air transport, in addressing anticompetitive practices in professional services, and in reducing barriers to
entrepreneurship.
Take unilateral and multilateral steps to open international markets to trade
and investment in services.
OECD work shows that the benefits of international trade and investment in
services are highly significant, for both OECD economies and developing
countries. Policymakers can take unilateral steps to open markets to international
competition, for instance by reducing barriers to foreign direct investment. At the
same time, multilateral action is needed to ensure a broad opening of markets and a
wide distribution of the benefits. OECD members should therefore seize the
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opportunities offered by the ongoing WTO Doha negotiations to open their

services markets.
Reform labour markets to enable employment creation and adjustment to a
growing services economy.
Effective labour and social policies are essential to help OECD economies adjust to
globalization, structural change and the shift to services. To strengthen
employment creation in services, policy makers should address high labour taxes
that affect the job prospects for low-skilled workers and the development of
personal services in OECD economies. Employment protection legislation should
be reformed in countries where it is overly strict, to help improve the capacity of
these economies to create employment and enhance productivity growth in
services.
Adapt education and training policies to rapidly changing requirements for
new skills. Since most services involve direct contact with customers, human
resources are key to services sector performance. Education policies are important
to help workers adjust to globalization and structural change and should help
provide the qualifications that are needed in services. However, they need to be
supplemented with actions, partnerships and co-financing by firms, workers and
governments to foster life-long learning. This will require improved incentives for
private financing of life-long learning and actions to ensure equitable access to
formal and on-the-job learning.
Adapt innovation policies to the growing importance of services innovation.
Innovation policies remain ill adapted to the growing importance of innovation in
services, and to the new potential for product and process innovation that is due to
information and communications technology (ICT). Policymakers should consider
how existing public R&D can better address the needs of the services sector and
improve the links between services sector firms and public research. In modifying
policies related to intellectual property in services, governments will need to strike
a careful balance between innovation and the diffusion of service innovations to
other industries.
Remove impediments that prevent services firms from seizing the benefits of
ICT.
To seize the benefits of ICT for services, governments should continue to
encourage effective competition in ICT infrastructure, network services and
applications, notably for broadband. They will also need to increase the trust in
electronic business, e.g.by developing effective regulatory frameworks. Regulatory
barriers, e.g.to digital delivery and digital content, also require reform, as they are
not adapted to the new potential offered by electronic business. Moreover,
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governments can take action themselves, by developing public services and digital
content.
Provide a fiscal environment which is conducive to the growth of services.
Governments will need to avoid that the interaction between the application of EU
and non-EU value added taxes, as well as sales taxes, leads to new tax barriers to
cross border services. Tax treaties should be reviewed to avoid such activities
being subject to double taxation. Tax dispute settlement procedures should be
accelerated andrein forced, notably for cross border services and intangibles.
Reform of services sector policies provides an important opportunity for policy
makers to strengthen employment, productivity and innovation. It will also help in
strengthening the capacity of OECD economies to adjust to economic globalisation
in services and to the growing importance of services to future growth in OECD
economies. The policies advocated in this report are mutually reinforcing. This is
important since seizing the new growth opportunities in the services sector and
adjusting to globalisation will be possible only through a comprehensive strategy
based on a policy mix that is suited to each country or circumstance. With so many
policy areas affecting the services sector, priorities are essential, however. Moving
quickly towards more open and competitive services markets, at both the national
and international level, is of the greatest importance to foster new employment
opportunities and increase innovation and technology diffusion. This also means
providing more scope for entrepreneurs to explore the new business opportunities
in the services sector, in particular at the global level, and providing a fiscal
environment that is conducive to the growth of services. At the same time,
improvements in the functioning of labour markets and institutions are urgently
needed to help OECD economies adjust to globalisation and the shift to services.
Education and training policies clearly have a key role in providing workers with
the new skill they will require in an increasingly global service economy. Also,
much can be done to improve policies related to innovation and ICT in services, as
the combination of ICT and process innovation holds the key to generating more
rapid innovation and productivity growth in the services sector. In all these areas,
itwill also be important to account for the large diversity of the services sector and
the resulting variety in policy challenges and growth prospects.

Introduction
Every economy consists of three sectors. They are primary sector
(extraction such as mining, agriculture and fishing), secondary sector
(manufacturing) and the tertiary sector (service sector).
Economies tend to follow a developmental progression that takes them
from a heavy reliance on primary, toward the development of
manufacturing and finally toward a more service based structure.
Historically, manufacturing tended to be more open to
International trade and competition than services. As a result, there has
been a tendency for the first economies to industrialize to come under
competitive attack by those seeking to industrialize later. The resultant
shrinkage of manufacturing in the leading economies might explain their
growing reliance on the service sector. However, currently and
prospectively, with dramatic
cost reduction and speed and reliability improvements in the transportation
of people and the communication of information, the service sector is one
of the most intensive international competition. The service sector is the
most common workplace in India. The service sector consists of the soft
parts of the economy such as insurance, government, tourism, banking,
retail, education, and social services. In soft sector employment, people
use time to deploy knowledge assets, collaboration assets, and process
engagement to create productivity, effectiveness, performance
improvement potential and sustainability. Service
Industry involves the provision of services to businesses as well as final
consumers. Services may involve transport, distribution and sale of goods
from producer to a consumer as may happen in wholesaling and retailing,
or may involve the provision of a service, such as in pest control or
entertainment. Goods may be transformed in the process of providing a
service, as happens in the restaurant industry or in equipment repair.
However, the focus is on people interacting with people and serving the
customer rather than transforming Physical goods.

Service sector in India

Service Sector in India today accounts for more than half of
India's GDP. According to data for the financial year 2006
2007, the share of services contributes to 55.1 per cent of the
GDP, where as industry, and agriculture in shares 26.4 per cent,
and 18.5 per cent respectively. This shows the importance of
service industry to the Indian economy and as service sector
now accounts for more than half the GDP marks a watershed in
the evolution of the Indian economy and takes it closer to the
fundamentals of a developed economy. There was marked
acceleration in the growth of services sector in the nineties. While
the share of services in India's GDP increased by 21 per cent
points in the 50 years between 1950 and 2000, nearly 40 per cent
of that increase was concentrated in the nineties. While almost all
service sectors participated in this boom, growth was fastest in
communications, banking, hotels and restaurants, community
services, trade and business services. One of the reasons for the
sudden growth in the services sector in India in the nineties was
the liberalization in the regulatory framework that gave rise to
Innovation and higher exports from the services sector. In the
current economic scenario it looks that the boom in the services
sector is here to stay as India is fast emerging as global services
hub. Indian service industry covers a wide gamut of activities like
trading, banking & finance, infotainment, real estate,
transportation, security, management and technical consultancy
among several others. The major sectors that combine
Together to constitute service industry in India are listed below.
Information Technology
Trade
Education
Financial services
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Media

Indian financial services industry-an overview

Financial services refer to services provided by the finance
industry and it encompasses a broad range of organisations that
deal with the management of money. It is an umbrella category
that encompasses a variety of services, including banks,
Insurance companies, asset management companies, credit card
companies, consumer finance companies, stock brokerages,
investment funds and government sponsored enterprises. India
Has one of the most developed financial services markets in the
developing world. Top companies from the United Kingdom and
the United States among others are already active in India's
financial markets. Some of the big names are: Merrill Lynch,
Oppenheimer, JPMorgan, Morgan Stanley, Grind lays,
Standard Chartered, Hong Kong and Shanghai Banking
Corporation among others. Local financial Institutions such as the
Industrial Development Bank of India (IDBI), Industrial Credit and
Investment Corporation of India (ICICI), Industrial Finance
Corporation of India, Unit Trust of India and the
Shipping Credit and Investment Corporation of India have raised
billions through the most sophisticated financial instruments
including Deep Discount Bonds. The two segments that constitute
the major part of the Indian financial services industry are Banking
and Life insurance.

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Indian banking industry

Indian banks have played a significant role in the development of
Indian economy by inculcating the habit of saving among Indians
and by lending finance to Indian industry. India has a well
developed banking system. Most of the banks in India were
founded by Indian entrepreneurs and visionaries in the preindependence era to provide financial assistance to traders,
agriculturists and budding Indian industrialists. Indian banks
can be broadly classified into nationalized banks or public sector
banks, private banks and foreign banks

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