South Asian Business news and information

In the ESCAP ' The annual Economic and Social Survey of Asia and Pacific 2006' document' it has been stated that Indian economy had satisfactory growth in 2005. The survey also acknowledged that India is becoming the major technological hub in Asia and the Pacific region. However, the report has called on the Indian government not to put too much focus on ICT sector for job creation. It has stated that india has a labor force of 450 million and not even 1 million people are employed in ICT sector. The reports also criticized some countries including India for having ' strict employment-protection regulations, which tend to reduce employment generation.'

 In the recent days everyone in India seems to be too much excited with the success in outsourcing and ICT. The report of ESCAP has categorically stated, ' The information technology sector accounts for less than 1 per cent of GDP in India and employs fewer than 1 million people in a total labour force of 450 million, so the sector’s quantitative significance is limited.'  

I agree with basic assertion of ESCAP report in this regard but I like to point out the fact that Information Technology is now and export oriented sector for India and that is why it is so important to focus on this sector. Secondly, when a person gets a job in ICT sector, it is normally a high paying job and when he is spending the money in his city it is contributing in creating jobs in the other fields.

 Do you agree with me?

 You can read about this issue more in this website.