Page 61 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes contributing to its growth. The Indian film industry is also generating additional revenue
through collaboration with the ICT sector, such as DVDs, music CDs, mobile downloads, and
online gaming. High rates of entertainment tax and lack of uniformity in tax structure across
states are major factors inhibiting growth of the film industry. Adoption of the goods and
services tax (GST), subsuming service tax and entertainment tax, could promote growth of the
film industry. Piracy is another challenge for the Indian film sector. To make it relevant to
present day requirements and to check piracy, the Ministry of Information and Broadcasting is
in the process of amending the Cinematograph Act 1952. India has also signed co-production
agreements with six countries with a view to pooling their creative, artistic, technical, financial,
and marketing resources for co-production of films and television programmes. During 2011-
12, the Ministry has accorded 20 foreign production houses shooting permission. Given the
potential of this sunrise sector in India’s growth and trade in services, efforts are needed to
relocate the business of the Indian film Industry from foreign countries to India by addressing
issues like tax credit which can increase activities in India and also generate employment.
In the publishing sub-segment, India has about 77,384 newspapers/magazines (registered) in
circulation in 23 scheduled languages (including English) and several other non scheduled
languages. The low readership penetration (around 30 per cent) as compared to a literacy level
of over 75 per cent underscores the potential for growth. About 42 per cent of advertising money
spent in the country is through the print media. The penetration of internet services is also
contributing to online news consumption in India. In the print media sector, foreign investment
up to 100 per cent is allowed in the non-news, i.e. the specialty/technical/scientific sector of the
print media, whereas up to 26 per cent is allowed in the Indian entities publishing newspapers
and periodicals dealing with news and current affairs. Foreign investment up to 100 per cent is
allowed in case of foreign publishing houses bringing out facsimile editions of their own
newspapers through wholly owned subsidiary.

Self Assessment

Fill in the blanks:
6. The “Four P’s” of marketing: ........................... .

7. A ........................... company is one that can create a single product and only have to tweak
elements for different markets.
8. The “expected” sales of a given type of product in a country minus the actual sales
........................... .
9. ........................... is the response of the organisation to the realities of shareholders and the
business environment.
10. The ........................... services market can be broadly categorized into engineering and
management consultancy.

2.6 Challenges and Outlook

India’s services sector has been resilient even during the tumultuous years of the global economic
crisis maintaining a steady growth of around 10 per cent. This happened even when overall GDP
growth dipped sharply to 6.7 per cent in 2008-09.

2.6.1 Outlook

A dissection of the growth rates of different services shows that this resilience was, to some
degree, due to the government’s policies of higher social expenditure and commitments for pay

56 LOVELY PROFESSIONAL UNIVERSITY