Indian GDP's explosive imbalance

Let truth prevail

It makes for an impressive headline across India's newspapers each year - "Services sector leads sectoral growth once again; clocks double-digit growth, pushes GDP above 7%".
The latest Economic Survey of India (2011-12) presented in March 2012 pegs the share of Services in India's GDP at a staggering 59%. Agriculture and Industry both account for the rest.

Such a figure not only makes a great headline, but creates a great comfort zone for our politicians. They love it. It gives them something to showcase, and hide the systemic faults. It creates a strong illusion that the entire economy is moving forward at a good pace. An illusion that somehow the great discomfort that stems from poor contributions from both the agriculture and industry sectors can be padded using the impressive growth figures of the services sector. And to top it, taxing this sector gives easy recourse to funds.

But the truth is far from this.

The truth is : Among the three, the Services sector - by its very nature - is the poorest employer of people. And when such a sector starts dominating the GDP with the wild swagger that we see today, it's the most visible sign that a stage of imbalance has already been reached.

The risk of such an imbalance is clear : Large employment disparity, leading to social chaos. 

Trained manpower is in abundant shortage

India is a huge country, with present population nearing 120 crores (1.2 billion) people. Services sector at present does not employ more than 10-15% of the population. A huge 75% plus of India's working population works in its most unproductive sectors - agriculture and industry.


We cannot ever hope that the service sector will become the biggest employer, or a mass-rapid employer, because it needs "skilled" manpower, and those skills take time to develop; and it has been proven through many studies that the Indian mainstream education system has shamefully failed in staying apace with what corporates want today. Even the National Skills Development Mission cannot hope to remedy the situation because by the time its efforts will start paying off in a big way (if they ever), the imbalance will have tilted the ship over.

Why reading is no longer a popular sport

How do I start?

Talk to any young person and you realise that the one habit that has taken the maximum hit due to other temptations of the modern world is "reading".


It seems that the young have simply either given up reading, or have restricted themselves to the narrow niches of their professional needs. Broad, generalist readers are a diminishing community. If things go the way they are, it's a matter of time before a fitting RIP is written for this tribe.


Why is this happening? Some reasons I think are important -

1. False illusion due to social media : Since a lot of youngsters spend a lot of time doing social media networking, there is a false sense of having done a lot of "reading" directly or indirectly through social media itself! Nothing could be far from the truth. The superficial, cursory and utterly peremptory scanning of the written content on Facebook or Twitter can hardly qualify as genuine reading. Still, many feel so.
   

Getting started on Social Media? Five tips for you!

If you are one of the thousands who are just about to start their journey on the Social Media highway, and are eyeing a serious payoff from your efforts online, here are five powerful and direct tips to help you make your journey truly rewarding!

Let's fish!

Social Media is an extremely powerful, useful and evolving monster. It is huge, defies limiting definitions, and can cut both ways. If mastered properly from the beginning, then it may be extremely rewarding in the mid to long term. If done without a consistent thought, then efforts are likely to result more in frustration. And since the ocean of social media is teeming with all kinds of resplendent fish, it's important to learn some basics of fishing!

Here goes!

First Power Tip:  IT TAKES TIME
If you have just started building your serious presence on online platforms like Twitter, Facebook, LinkedIn, Blogger, YouTube etc., then remember the first golden rule - it takes significant time to develop rich, deep profiles that will interest a steady stream of followers. It just does not happen overnight. In that sense, social media property development resembles body building. It grows with time only. So do not be too impatient and even if you are, do not be frustrated with results too soon. Wait, and keep fertilising and irrigating your properties regularly. Incrementally, you will see growth. So, for example, your number of Facebook friends may grow much faster than the number of LinkedIn connections. That's how it generally is. So relax and let it happen.

Spiritual management of traffic stress

I live in a beautiful mid-size town - Indore (MP) - that has an amazing sense of traffic. People create their own rules, and  live strictly by them. Some such rules that I have encountered are:

• Move when the lights are red, and stop when green
• Stop ahead of the 'stop-line'
• Criss-cross the road without warning
• Never cross the road at the zebra crossing

Many more ingenious versions of these exist in my nice little town.

Now as I am a law-abiding citizen, this gets me really worked up badly. I get angry when I see that a lot of citizens are simply, blatantly, and without a sense of remorse breaking all traffic rules. I start cursing them, and swearing at them, and ultimately have a bad headache.

A practising manager's spiritual pursuit
of equilibrium amidst chaos

And the beauty of it all : nothing changes! In fact, it gets worse by the day :)

So I have found a cure for this huge internal strife that goes on everyday I drive in my town. This intelligent formula is what I call "A practising manager's spiritual pursuit of equilibrium amidst traffic chaos". I will be submitting the writeup of this theory to one of the new IIMs soon for a technical paper presentation, under the modern evolving HR theme (the older, more established ones may not entertain me). Perhaps one of the leading newspapers will also feature me on their front page, with a catchy headline.