Group Discussion Contest August 08 to August 16th!

The manufacturing industry forms the backbone of the country that is it also supports the service industry. To fuel the growth of the economy it is necessary to strengthen both the sectors.
The service sector has been one of the fastest growing in the world and is presently booming. The manufacturing industry in India is labor intensive and thus provides major employment to the less educated. Though its contribution to the GDP has been comparatively lesser as compared to the service sector. So a planned growth for the manufacturing sector is necessary while sustaining the development of the service sector.

Hello friends, back with a new topic:

The topic for this week's discussion is:

What should be given more importance in order to make India grow economically, Service Industry or Manufacturing Industry??? Here service industry refers to jobs such as IT, IT-enabled BPO, KPO etc. jobs, Hotel industry etc.
If we were to have a kind of economy that would be able to sustain itself and provide jobs to large number of population, what should be it, Service or Manufacturing??


All the best! :)

Let me first Thank Kalyani to search such a lovely topic for discussion. Among all the topics discussed till now, I liked this one most :)

I think both are necessary.
Will a day be complete without day time and night time? Also, both are human needs. Let us give equal stress to both. :)

When literate people search white collar jobs in BPO and Banking industry, illiterate people may look job in industries. A society is a combination of both.
Manufacturing industry requires some paper work too, which is done by computerised sector. Also, Service industry give help to manufacturing industry too...best example is giving financial support. Actually, it's a give and take policy and both the sectors can't stay alone without the support of other. isn't it?

Let me reiterate that service sector is mainly for support to the manufacturing and trading units. Service sector has no existence of its own without manufacturing units. Transport, BPO, communication etc only support the manufacturing units and also use inputs from manufacturing units. Being an overhead to national economy, service sector should be small. Services should be more exported than used for internal purpose.

Let me reiterate that service sector is mainly for support to the manufacturing and trading units. Service sector has no existence of its own without manufacturing units. Transport, BPO, communication etc only support the manufacturing units and also use inputs from manufacturing units. Being an overhead to national economy, service sector should be small. Services should be more exported than used for internal purpose.

Yes I agree.
If a nation has to grow, it must be able to provide food to all.......and all the other primary needs. So, first preference is for manufacturing industry. Yet, if we have to connect with the whole world, we need some services too...
So it can be told that manufacturing industry forms the bone and structure while services are 'flesh' added to complete it

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCS. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

I agree in toto. Manufacturing industry is main. Service sector is in fact a support to industry only. There is no doubt that manufacturing has always been there. The only difference is of scale, technology and business promotion methods. In the beginning of human civilization, shoes were manufactured in cottage industry without heavy machines and sold in village only mostly on barter system. There was no need for advertisement and transport. BPO, computer have only facilitated the manufacture and improved.

We need to strengthen manufacturing and use less service sector. It is better to rather export the srvices.

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

But for the past 10-15 years, technology has changed a lot. Now even an LKG student is learning Ms-paint at school.
Earlier, population was also only half (if we take the statistics of 20 years).
Earlier it was possible. But now human needs and calculations have increased enormously and manual claculations alone cannot meet all challenges. ......as it's told...when we are in Rome, do as Romans do. So we also need to accept latest technologies including services to cope up with new situations and other nations.

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

But for the past 10-15 years, technology has changed a lot. Now even an LKG student is learning Ms-paint at school.
Earlier, population was also only half (if we take the statistics of 20 years).
Earlier it was possible. But now human needs and calculations have increased enormously and manual claculations alone cannot meet all challenges. ......as it's told...when we are in Rome, do as Romans do. So we also need to accept latest technologies including services to cope up with new situations and other nations.

Now technology has improved manufacturing methods, designs and accountancy. Computer is also indispensable in today's world. But the fact remains that service sector including computer and information technology is support to manufacture. Without manufacturing industry, service sector is meaningless. Incidentally, the computers and other gadgets are also products of manufacturing units.

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

But for the past 10-15 years, technology has changed a lot. Now even an LKG student is learning Ms-paint at school.
Earlier, population was also only half (if we take the statistics of 20 years).
Earlier it was possible. But now human needs and calculations have increased enormously and manual claculations alone cannot meet all challenges. ......as it's told...when we are in Rome, do as Romans do. So we also need to accept latest technologies including services to cope up with new situations and other nations.

Now technology has improved manufacturing methods, designs and accountancy. Computer is also indispensable in today's world. But the fact remains that service sector including computer and information technology is support to manufacture. Without manufacturing industry, service sector is meaningless. Incidentally, the computers and other gadgets are also products of manufacturing units.

yes, I also agree Computers should support manufacturing industry more than services........Then only we will be able to meet our primary needs without much manual work than before.
I think BPOs should be given last preference comparing to banking and other IT related services. isn't it?

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

But for the past 10-15 years, technology has changed a lot. Now even an LKG student is learning Ms-paint at school.
Earlier, population was also only half (if we take the statistics of 20 years).
Earlier it was possible. But now human needs and calculations have increased enormously and manual claculations alone cannot meet all challenges. ......as it's told...when we are in Rome, do as Romans do. So we also need to accept latest technologies including services to cope up with new situations and other nations.

Only a total ignorant would deny the importance of computers today but my point is that we need more solid products to sell in the market because mere computer training or BPO is not going to feed 1.4 billion people of this country. By the way, even computers are part of the manufacturing sector and manufactured by skilled workforce. Even the software/ICs that runs a computer is product of hardware engineering, another manufacturing example.

@sandhya- You mean we were not doing any productive output a couple of decades back when there was no computer. I have done my Mechanical engineering without even touching a keyboard of a computer. We have big plants started by Tatas and Birlas when there were no computers anywhere in sight. What I feel that computer is only good up to certain extent for a country like ours where there are more hands and lesser jobs.
Why make them even lesser by inducting computers in place of men who need those jobs so eagerly? However, the production of consumables and utility products is must for any county; service industry at best can be described as allied industry. I wish people knew the importance of white color jobs in production sector. Production units are not about illiterate, unskilled labors only but highly skilled workforce including, people from accounts, technical research, and whatever science can offer.
Do you know Tata is better known in the world for Tata motors, Titan, Tata steels etc than TCF. Even Azeem Premji knows the value of production therefore runs different consumer products manufacturing units apart from Wipro.
Can you imagine your life without Voltas a Tata's company, Bajaj, Maruti, Godrej, Cera, JP group, DCM, Bhilai steel and so on? BPO is all right but not considered a white colored job with any angle.

But for the past 10-15 years, technology has changed a lot. Now even an LKG student is learning Ms-paint at school.
Earlier, population was also only half (if we take the statistics of 20 years).
Earlier it was possible. But now human needs and calculations have increased enormously and manual claculations alone cannot meet all challenges. ......as it's told...when we are in Rome, do as Romans do. So we also need to accept latest technologies including services to cope up with new situations and other nations.

Only a total ignorant would deny the importance of computers today but my point is that we need more solid products to sell in the market because mere computer training or BPO is not going to feed 1.4 billion people of this country. By the way, even computers are part of the manufacturing sector and manufactured by skilled workforce. Even the software/ICs that runs a computer is product of hardware engineering, another manufacturing example.

Yes..that's why i told 'mutual help'. Both are needed to meet present situations.
If technology is most made applicable in production industry, we can see a vast difference. But the problem is that, most preference is given to reduce manual calculation work. Isn't it?
Even s/w are made and installed in companies to reduce paper work :silly:

Let me reiterate that service sector is mainly for support to the manufacturing and trading units. Service sector has no existence of its own without manufacturing units. Transport, BPO, communication etc only support the manufacturing units and also use inputs from manufacturing units. Being an overhead to national economy, service sector should be small. Services should be more exported than used for internal purpose.

I think that is not entirely true.When I say Service Industry I am talking purely about services provided to client and not facilities such as Transport, communications etc. Now, strictly speaking Services refer to IT, IT-enabled sectors such as BPO, KPO, LPO, Medical Transcriptions, etc. and hotel and airlines industry. Support services such as manufacturing and supplying parts etc are not seen as services but purely as manufacturing. This is what I am talking about. The reason I have considered this distinction is because IT, IT-enabled sectors cater mostly to clients that are overseas whereas manufacturing sectors have mostly local, national and sometimes global clients. Therefore, the contribution of sector to Indian economy would be differently proportioned. I trust I am clear.

Just to pull it up, it seems to be forgotten by all!!! :( :( :(

I was reading an article about the strategy the world bank is planning to put into place where Indian economy is concerned ( We already have a huge debt balance that is only growing each year ).Poverty eradication is of course the most importanrt agenda and also side by side laying emphasis on the development and growth in consultation with country authorities, civil society organizations, development partners, the media, the private sector, and other stakeholders as well !....There should be a focused growth that takes into account various factors like rising food prices ,lack of infra structure and rising inflation.Here both manufacturing units and private sectors have a role to play.Most of the time we see that any Industrial growth gets confined to cities only and the villages and smaller towns get overlooked probably because of factors like - lack of connectivity and lack of basic infra structure.Some states are taking the initiative to shift focus to smaller towns like in Gujrat, Maharashtra, Karnataka etc..

As of now our growth rate has fallen to 7% or even below that , and is expected to go further down because of a weak Rupee that has depriciated nearly 20% in the past 6 months.We still have no basic amenities like water,sanitation ,electricity and road connectivity.Private sectors can do a lot in these areas like we see in some states , villages have been adopted by large private sectors and things have drastically improved . No doubt that States like Maharashtra is leading in Water reforms so also Haryana and Rajasthan , but the same is not the case with other states.In years to come water might become a major hurdle and a stumbling block where sustained economic growth is concerned.So, steps should be taken ...

Taking everything into consideration I feel that Manufacturing units give more job opportunities.In fact India has had an impressive growth and performance of manufacturing Industries in the past two decades .However , that will continue and now in the coming years we may have to focus more on the service industry to have a balanced growth !

They say that to be a successful country you need to have satisfied citizens who get enough basic facilities and to provide basic facilities a country should have a proper infrastructure. Basic infrastructure services are that households and business houses use every day. The primary amenities like roads and transportation services, water, electric supply and distribution, and sanitation are the backbone apart from other necessary services but electricity being the main factor.

Now electricity is the main and basic need of a nation to walk ahead on the path of progress where we are too far behind. No country can go ahead and compete with other markets unless competent enough to produce quality products with comparative that is not possible without enough electricity available.

Therefore, if we have to become part of the world power then there is no alternative but to increase our production that counts. I know we are world leaders as far service industry is concerned since we are facing lesser red tapism there because that requires no major infrastructure and free from government control.

To increase productivity we shall have to increase our power production immediately and would have to bring it under private sector like we took communication out of public sector and the result is there for every one to see. There is no alternative but to increase production on mass level to compete with countries like China, Korea and Japan and that is not possible without proper infrastructure.

A nation is as good in any field as its infrastructure permits it to be. Just have a look at Olympics, we are celebrating today after getting only few bronze and silver medals where as China that started along with us is far ahead in every field because they worked on infrastructure and now competing with the best countries in the world in every field.

Let me reiterate that service sector is mainly for support to the manufacturing and trading units. Service sector has no existence of its own without manufacturing units. Transport, BPO, communication etc only support the manufacturing units and also use inputs from manufacturing units. Being an overhead to national economy, service sector should be small. Services should be more exported than used for internal purpose.

I think that is not entirely true.When I say Service Industry I am talking purely about services provided to client and not facilities such as Transport, communications etc. Now, strictly speaking Services refer to IT, IT-enabled sectors such as BPO, KPO, LPO, Medical Transcriptions, etc. and hotel and airlines industry. Support services such as manufacturing and supplying parts etc are not seen as services but purely as manufacturing. This is what I am talking about. The reason I have considered this distinction is because IT, IT-enabled sectors cater mostly to clients that are overseas whereas manufacturing sectors have mostly local, national and sometimes global clients. Therefore, the contribution of sector to Indian economy would be differently proportioned. I trust I am clear.

Services to clients actually mean service to manufacturing and trading units. The clients need experts- advocates and chartered accountants and others' advice- for their manufacturing or trading activities. Even advocates and chartered accountants are aid to manufacturing and trading units. The only exception could be service provided direct to households and individuals for family issues. Education in philosophy and religion is exception. But facilities in such branches are very limited as these offer no financial scope. Even education in Engineering, technology etc facilitates manufacturing units. Nobody argued that manufacturing and supplying parts are services. These are either manufacturing or trading.

The plain fact is that manufacturing is main activity. Agriculture also besides providing food is source of inputs to manufacturing units. service sector supports either manufacturing units or trading units or agriculture. Again service sector also needs inputs from manufacturing units. Service sector is just overhead in national economy. This must be minimum. It is better to export services. However such export of services is also a support to manufacturing units abroad.

Bearing in mind the definition of a 'service industry', I personally feel the Manufacturing Industry might be a better bet. My primary reason for this is that the service industry is dependent on outside support. The only way the service industry will improve is if other countries provide us with required support - be it in the form of work required to be done or tourism. The state of the market today is not really conducive to such support from other countries. The Manufacturing Industry on the other hand is something that will remain in our control, and which we can work on without the hindrance of having to depend on anyone else.

Let me conclude. The issue is whether service industry should be given more prominence. My view is that service sector is mainly for support to Industry, agriculture and trade. Service sector is a kind of overhead to the economy. Any factory attempts to keep overhead to the minimum. This is true about nation also. We should use services very economically and see that percentage of services to industrial output is minimum. Services should be better exported rather than used internally.

It was a nice topic....am really surprised with its response :dry:

Yet, I also want to conclude this discussion

I give first preference to manufacturing industry. Service sector comes only second. It's true, both of them are important in their own means for the development of a country. Yet, I put a suggestion that service sector should also give preference to manufacturing industry, giving them better services and researches to get maximum output. Let us use our computerized knowledge wisely.
Now BPO industry is growing fast in our country. Though it gives a good source of income to our country, let us give it last preference comparing to other sectors, as they are serving only foreign countries most. Am I not right?
A nation will be named developed only if its exports exceed imports and it can happen only if our manufacturing industry is re-inforced giving better outputs. Also, primary necessities of all citizens....food, shelter and clothing satisfied. That's why am giving emphasize on manufacturing industry with the introduction of latest technologies and ideas by which human power can be well utilized and work load decreased, giving more output units.
Let us reinforce our service sectors giving agricultural/manufacturing loans to those who really deserve it and thus money used in an effective way. :) :) :)

Adding a few more points....

Most manufacturing units and public sector undertakings do not manufacture the entire range of products by themselves but outsource different sub assemblies to different private companies. Their primary role is to integrate these sub assemblies to make the final product. So, it is essential to have smaller private sector and service units that help the major indusrtries perform efficiently in meeting their deadlines and also meeting demands.
We have many major manufacturing units and public sectors undertakings in our country which need the back up of smaller private units.India is now on the verge of privatising most its public sector holdings with the sole intention of making them profitable. A few of them have already been done and have shown positive and some even impressive results like the oil companies .In the near future this will happen with many more major public sector undertakings and when that happens ,smaller private holdings will have a say in the matter , since no large industry is able to sustain itself without the smaller sub units ...We need to give more importance to the sub units which are all part of the private and service industry, so that we have a balanced growth !