Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai

Table: 6.11.3 B

With calculations based on our research findings the projected direct employment in the city of Mumbai for 2010 will be 2,86,121 employees and indirect employment will be 1,78,826. This implies that the total employment generated by the financial sector in 2010 will be 4,64,947 employees.

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  With India is emerging as the “Back office to the world”, Mumbai has a greater potential to evolve as the “International Financial Centre”. The city is already blessed with the presence of premier financial business units, (relatively) low cost labour, English-proficient and educated workforce, high quality and low priced telecommunication infrastructure. These attributes work in favour of a robust Financial Sector, thus the city hold great potential for creation employment opportunities in the sector.
  
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  Over the last decade, the Financial Sector has witnessed a gradual switch over from manual to mechanised system of working, forcing several public sector and co-operative financial business units to undertake massive re-skilling programmes for their existing employees. Competition has created a scenario of ‘Change or Perish’, whereby the slow movers are being forced to ‘adopt and adapt’ technology.
  
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  Over the decade, the number of direct employment in the Financial Sector has reduced significantly due to VRS schemes offered by several public sector and cooperative units. The process of downsizing/right sizing is likely to continue, though at a lesser pace, over the next five years. While there has been a cut in direct employment, the sector witnessed a sharp rise in the figures of contractual employment.
  
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  Most public sector and cooperative financial business units have terminated new recruitments at the middle and lower end of the management hierarchy. Recruitments of only specialised and highly skilled personnel are underway; here again the focus is for multi-skilled, technical and customer-services personnel.
  
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  Public sector and cooperative financial business units are stressing on basic IT literacy amongst employees across the board, and have taken necessary steps to ensure the same. In the changing scenario, apart from the sector-specific orientation and requisite financial aptitude, future executives are required to have basic IT skills.
  
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  Over the next five years, increased focus on strengthening retail businesses is expected to create a higher demand for ‘savvy frontline’, ‘efficient backend’ and ‘technically skilled’ personnel at every level.
  
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  Maturing Financial Sector is expected to create high demand for IT professionals, CAs, CFAs, investment analyst, portfolio managers, agriculture officers, specialists in derivatives, futures, commodities… and other highly specialised professionals.
  
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  Presently, financial sector is sourcing personnel from management colleges. Though most of these candidates have basic financial qualification, they seem to be lacking requisite job skills. Resultant, the companies are forced to provide rigorous training and orientation in soft skill and on-the-job training.
  
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  Presently, co-operative banks are governed by strong RBI guidelines, thus have to cater to certain procedures while undertaking network/product expansion. A greater degree of autonomy to co-operative banks for deciding products/business expansion could result into several new employment opportunities.
  
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  Financial business units across the sector are unanimous that increased focus on small towns and retail investors will result into proportionate increase in employment opportunities in key sub sectors like: banking, mutual fund, insurance, equity market, commodities…
  
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  By following private sector approach of outsourcing mundane business processes and product/service marketing to external agencies, the public and cooperative sector financial units could create several indirect employment opportunities. Sub sectors like banking, insurance and mutual funds, offers immense opportunities for indirect employment generation.
  
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  Increased use of IT and networking of branch operations across the Financial Sector has created demand from not only IT personnel, but also for those skilled in areas like data warehousing, data mining, database architects, and other integrated backend operations.
  
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  Financial business units are increasingly moving towards remote electronic transactions – introduction of ATMs, Smart Cards, Phone Banking, Internet Banking, etc. has necessitated re-skilling of employees in the area of technology, marketing and customer service, so as to help achieve the set business objectives and maximise profits.
  

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  The Indian financial sector is gradually moving onto higher technological platform leading to higher investment by companies so as to enable faceless product/service (financial) transactions. In the changing scenario, it is required that the future employers in the sector are trained extensively in customer-interface technology and IT.
  

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  Future employees are expected to not only be strong in finance, but also have strong orientation in marketing and sales. Thus, in addition to imparting education in finance, educational institutions are required to attune themselves with the requirements of corporate sector and churn out market-savvy employees.
  

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  Increased focus on small town and retail investors is likely to result into increase in employment at the district level. Hence, it is required that quality manpower - right aptitude and attitude, are available at local level.
  

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  Presently, co-operative banks are governed by strict RBI guidelines, and they are limiting their expansion plans and introduction of retail products. It is required that RBI change its approach and provide level playing fields to the co-operative banks, it would enhance employment opportunities within the sector.
  

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  Gradually, financial companies are moving towards 24x7x365 service mode (online and off-line) due to increased competition for efficient delivery channels. It is creating a new breed of tech-savvy and customer-friendly, which calls for paradigm shift in employee-orientation.
  

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  Aggressive retailing by private and foreign financial institutions has resulted into sharp rise in contractual employment. Presently, institutions are outsourcing mundane business processes, and are recruiting only multi-skilled, technical and customer service personnel. Educational institutions are required to be sensitive to the industry needs and likewise tailor-make their courses.
  

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  High cost of property and technological advances are influencing financial companies to move towards ‘Relationship Banking’ – ATMs, Smart Cards, Internet Banking, Phone Banking, etc. These areas are likely to witness high growth rates over the next decades provided there is availability of trained and skilled manpower. The existing courses are ill-equipped to cater to the emerging needs of the sector.
  

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  The change in environment has necessitated recruitment of highly specialised manpower like: economists, investment planners, portfolio investors, treasury operations, agriculture officers, finance executives, etc. The courses presently offered by the educational institutions do not provide flexibility to diversify in various specialisations.
  

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  In certain specific financial operations such as risk management, forex dealings, treasury operations, derivatives, securitisation, hedging, infrastructure lending, etc. the sector continue to face problems sourcing experienced and qualified personnel. In the absence of structured courses in these micro specialisations there is an acute shortage of trained manpower.
  

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  Future employment growth in the sub sector would be fuelled largely by indirect employees, i.e. franchising and outsourcing. Larger the retail focus adopted by the financial institution, greater would be the scope for indirect employment generation. This calls for creation of efficient and quality-driven outsourcing units at the backend.
  

CHAPTER- 7

EMPLOYMENT GENERATION IN THE CONSTRUCTION SECTOR

After agriculture, the construction sector is the second largest economic activity in the country and has been valued at Rs. 2,80,000 crore as on March 31, 2004. It contributes approximately five per cent to GDP, employing 320 lakh workers. In other words, construction constitutes for 40-50 per cent of the capital expenditure on projects in various sectors such as energy, transport, irrigation, social sector, communication, defence, and rural and urban infrastructure. The Government of India (GOI) in its 10^th Five Year Plan (2002-07) has aimed to achieve eight per cent growth in GDP, and while doing so it plans to improve physical infrastructure facilities such as roads, ports, telecom and power. The recent annual budget laid emphasis on infrastructure facilities and likewise allocated resources for the same.

Under construction, the National Highway Development Project (NHDP) is already making an impact on the economy and lives of Indians. In addition to Rs. 1,72,000 crore investment plans in NHDP to cover the balance 5768 km., the Surface Transport Ministry has plans for approximately 10,000 km. of new expressways, and 2,500 km. of roads in North-East. It is also inviting tenders for the North-South and East-West corridors at an investment of Rs. 25,956 crore. Under the NHDP Phase – III, the government proposes to take up 10,000 km. road connectivity between state capitals and nearest national highways at a cost of Rs. 45,000 crore. The Prime Minister Gram Sadak Yojna slated to connect approximately 1,70,000 villages by a 3,69,000 km. of rural road will require an investment of Rs. 1,33,000 crore.