Page 51 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes as on 31 December 2011 and 19.69 million internet subscribers at the end of March 2011. However,
broadband has lagged behind the growth of telephones in India. Special efforts are being made
to increase the penetration of broadband, especially in rural and remote areas. The upcoming
decade is likely to usher in an information era through Mobile Value Added Services (MVAS)
and Broadband for All. The successfully concluded auction of the Broadband Wireless Access
(BWA)/3G spectrum and National Optical Fiber Network will enhance wireless broadband
penetration and help connect the remotest locations across India.

Posts

India Post has the largest postal network in the world with 154,866 post offices across the length
and breadth of the country as of 31 March 2011. On an average, each post office serves 7,814
persons with coverage of approximately 21.23 sq. km. As many as 139,040 post offices are in
rural areas, while 15,826 are in urban areas. In addition to its own network, the Department of
Posts also serves through 1155 franchisee outlets in areas where it is not possible to open post
offices. Government has launched Project Arrow in 2008 to transform the existing India Post
infrastructure across the country by upgrading key postal operations such as mail delivery,
remittance, and banking services. India Post is emerging as a one-stop shop for retail products
and offers a single window facility for banking, money remittances, and other financial products.
In addition, India Post has been given the responsibility of disbursing wages to beneficiaries of
the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) through 96,895
post offices. The postal network is also being used by other government departments/agencies
to collect data like the rural consumer price index. The postal sector needs to keep pace with
changing times as many of its services have become redundant with growth in technology and
takeover by other players. Quick decisions and actions to stay abreast of the times including
switching over to new activities and downsizing could release a lot of resources from this sector
for use elsewhere.

Note Shipping is considered as an very significant indicator of trade of goods & services
of a country

2.5.6 Real Estate Services

Housing is a basic need and provides economic and social security to the people. It is also an
‘asset’ that can have significant leveraging effect to support and supplement other means of
income generation and poverty alleviation. It is an important employment-intensive sector. A
host of vocations and professions like construction workers, builders, developers, engineers,
valuers, property consultants, interior decorators, consultants, and plumbers derive their
livelihood from housing either directly or indirectly. Estimates show that for every rupee that
is invested in housing and construction, ` 0.78 gets added to GDP. Housing ranks fourth in terms
of the multiplier effect on the economy and third amongst 14 major industries in terms of total
linkage effect. The real estate industry has significant linkages (both direct and indirect) with
nearly 300 sectors like cement, steel, paints, and building hardware which not only contribute to
capital formation and generation of employment and income opportunities, but also catalyse
and stimulate economic growth. Therefore, investment in housing and real estate activities can
be considered a barometer of growth of the entire economy.
The GDP share of the real estate sector (including ownership of dwellings) along with business
services was 10.6 per cent in 2010-11. After growing at 10.4 per cent in 2008-09, the rate of growth
of this sector has decelerated to 7.8 per cent in 2009-10 and further to 6.9 per cent in 2010-11.
Currently, about 5 per cent of India’s GDP is contributed by the housing sector. With institutional

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