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

Table 5.5

During the course of the study a two-pronged approach – macro and micro - has adopted, and the sample units selected have been such that they provide us with employment trends at both macro and micro level.

In case of the industry associations representing various sectors/sub-sectors we met members of the managing committee, i.e. President, Chairman, Director, Secretary–General… In addition to interviewing these representatives, an attempt was made to collect sector-specific research data available from the associations on ‘sector performance’ and ‘employment trends’ for the last decade and projections for the next five years. In case of individual business units, we interacted with CEOs, Directors, Business Heads, HR Heads, Proprietors, etc.

Mumbai, the financial capital of the country, is home to several reputed financial institutions. The financial sector can be broadly divided into the following sub sectors: Banking, Insurance, Mutual Funds and Stock Market. Of these, we have focused on Banking, as it is the oldest and largest sub sector, and Mutual Funds, because it is the sunrise sub sector and holds great promise for future employment opportunities.

In order to get an overview of the Banking sub sector, we interacted with Indian Banks Association (IBA), State Bank of India (PSU bank), ICICI Bank (Private bank) and Saraswat Bank (Co-operative bank). To gain an insight into the Mutual Fund sub sector, we met the respective association for Mutual Funds in India (AMFI), and ICICI Prudential (Private) and UTI (Public sector).
5.8.2 Construction Sector

Much of the economic upswing in the country can be attributed to the liberalisation policies that were set in place over a decade ago. It led to a construction boom unparalleled in the history of the country in terms of sheer scale, complexity, and quality. One finds billboards advertising new residential and commercial complexes across the country and newspapers full with advertisements of residential and real estate listings. Mumbai has been one city that has immensely benefited from the boom in construction sector – residential and commercial complexes. In order to understand the changing landscape of the city and its impact on employment, we banked on the information and opinion from industry associations like National Institute of Construction Management and Research (NICMAR), Builder’s Association of India (BAI) and Maharashtra Chambers of Housing & Industry (MCHI). In addition, we have interacted with established infrastructure construction companies like Shapoorji Pallonji, Gammon India, Hindustan Construction Company (HCC), while builder’s perspective was obtained from leading companies like Evershine Builders and RNA Builders.

Though tourism sector comprises of several sub sectors, viz. Airlines, Hotels, Travel & Tour sub sectors, etc.; during the course of this study, we decided to focus on the Travel & Tour sub sector in Mumbai as it controls a considerably large portion of tourism business. And most of the other sub sectors are directly or indirectly dependent on the Travel and Tour sub sector for growth.

The very fact that IT can have a resounding influence on the performance of practically every business makes it the fastest growing sector across the globe. The overwhelming presence of IT in every business has resulted into several business units branching out into various specialisations and sub-specialisations. Broadly, the sectors can be divided into the following sub sectors: Software services, hardware, IT education and IT Enabled Services (ITES).

Over the last decade, the Indian telecom sector has witnessed amazing growth in cellular phones, fixed lines and broadband connectivity. The Mumbai region has seen phenomenal growth in connectivity over the last few years, so much so that we find middleclass households opting for multiple connections.

Globalisation and economic liberalisation has led to increased competition amongst companies/businesses, which in turn has necessitated delivery of goods and services in a timely and reliable manner. Over the last two decades, the entry of the MNCs and state-of-the-art technology has metamorphosed the courier services industry from the obvious delivery/pick-up of documents to handling turnkey logistics.

During the course of the research we interacted with associations like the Express Industry Council of India (EICI) and Air Cargo Agents Association of India (ACAAI) to understand the overall performance of the sector. In order to understand the business and employment growth, we spoke to MNCs like TNT and DHL Express India, and Indian companies like Vichare Couriers, Skypak Services and Jeena & Co.
5.8.7 Entertainment Sector

According to CII-KPMG report released in April 2005, the Indian entertainment industry is estimated at Rs 22,200 crores and is expected to grow at 18 per cent per annum to reach Rs. 58,800 crores by 2010. The report titled ‘Indian Entertainment Industry – Focus 2010: Dreams to Reality’, critically analyses and evaluates the effect and interplay of various forces that shape the landscape of the television, films, radio and music sectors – which cumulatively account for over 96 per cent of the Indian entertainment industry.

Post liberalisation, the rising purchasing power of buyers is driving the evolution of a retail sector in the country. Organised retailing has definitely made headway in the upper class. However, retailing of items such as milk, fruits, vegetables, etc. continue to be done at traditional outlets. The middle-income class prefer shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. Organised retailing does not seem to have made an impact on the lower class. Retailing in India is at a nascent stage of its evolution.

Although automobile sector has been on an upswing for the past few years notching an annual growth rate of 15.1 per cent, backed by introduction of contemporary models, easy availability of finance, rising price discounts. Though the technology used has witnessed a paradigm shift, the state of automobile service centres in the city is experiencing the going tuff.

Mumbai - business hub of the country has photocopy centres scattered all across the city, more so concentrated in areas that have high business activities and educational institutions. Geographically also, we find photocopy centres concentrated in and around suburban railway stations and marketplaces that have more than average human traffic. While selecting photocopying centres for research, we have focused on business units that are located in and around the railway stations in four different areas with diverse socio-economic structure i.e. Fort (commercial hub), Bandra (W) (educational hub), Kandivili (W) (residential locality) and Andheri (emerging business centre). As mentioned earlier, photocopying sector being unorganised we have interviewed 12 business units from these four areas. Here, the units vary both in size and business specialisation, but have one common feature - they have been in business for years and have a commitment towards their business.

CHAPTER- 6

EMPLOYMENT GENERATION IN THE FINANCIAL SECTOR

The financial sector in India is divided into several sub-sectors: stock exchanges, banking, mutual funds, insurance, FIIs, etc. Over the years, each of these sub sectors has shown promising growth in business. However, the entry of private players in the banking, mutual fund and insurance sector triggered a spate consolidation, mergers and acquisitions. While the banking sub sector had private entrants early on, the first mutual fund to be set up by the private player was in 1993. The insurance sub sector witnessed private participation as late as 2000. Over the decade, each of these sub sectors resorted to technology intensive and customer-friendly business model with strong focus on customer convenience. Though each of these sub sectors have an important role to play in the country’s economy, the banking sub sector hold a pivotal place in the country’s financial health. In an inaugural address by the RBI Governor, Dr Y V Reddy at the Banker’s Conference held last year highlighted that banking to be the most dominant sub sector and claimed that the share of banking assets in total financial sector assets to be around 75 per cent as of end-March 2004.

Almost 80 per cent of the banking business in India is controlled by Public Sector Banks (PSBs). However, the face of banking has been changing rapidly. Deregulation has opened several new opportunities for banks to increase revenues by diversifying into areas like investment banking, insurance, credit cards, depository services, mortgage financing, securitisation, etc. This has resulted into a marked improvement in the financial health of commercial banks in terms of capital adequacy, profitability and asset quality. It has also resulted into greater choices for consumers and an increased level of sophistication and technology in banks. As banks benchmarked themselves against global standards, they became more transparent and greater stress was given to corporate governance.