II. with the availability of financial services required

II. Rationale of the study

 

In the world of rapid growth of
globalization and changing dynamic trends, India also needs to develop its
infrastructure in order to show its presence in the global picture and to match
the high demands and the living standard of its citizens. The most important
way to keep pace with the environment for any country is to develop its
manufacturing sector. When more global and local players will invest in a
country, it will boost the trade and economic growth, develop its
infrastructure, and generate more employment opportunities for its citizens.
Mere launch of Prime Minister Mr.NarinderModi’s “MAKE IN INDIA” campaign
is not enough. The success of this campaign would depend upon potential, availability
and skill set of its work force along with the availability of financial
services required to propel the operations and growth of a manufacturing unit.
The study focuses on the importance of various available modes of financial
services along with the focus on how the potential of country’s work force can
be capitalized and enhanced in order to bring the desired change and accelerate
the desiderated growth of Manufacturing Sector in INDIA. The main aim behind
this study is to bring forward the role of INDIA’s human asset and financial
services in order to develop best in class manufacturing infrastructure in
India.

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III. Objectives of the study

 

India’s Manufacturing Sector cannot
be revived only by announcing campaigns or focusing on fiscal policy. It has to
be realized to develop a strong manufacturing hub. The objective of the study
is to:

1. To identify
the impact of Human Asset and Financial Services on the development of
Manufacturing sector in India and overall Indian economy.

2. To suggest
different techniques and systems through which financial assistance can be
provided which is required to propel the manufacturing industry.

3. To
understand the importance of capitalizing human potential and put forward new
ways of enriching human asset which is essential for the growth of
Manufacturing Firms.

4. To emphasize the promotion of
assistance of financial services and importance of taping of human asset
required for face-lifting the Indian Manufacturing Sector; which is the main
objective of “MAKE IN INDIA” campaign.

 

IV. Research Methodology

 

Research Type: Descriptive
Research

Type of Data/Data Source used: Secondary
Data/Data source.

The present study is based on secondary
data. Basically, the required information has been derived from

1.     
Various books.

2.       Articles from Newspapers, Magazines and
Journals, and

3.     
 From the
various related web-sites which deal directly or indirectly with the topics
related to FDI and Indian retail sector. After searching the important
web-sites, relevant information was down loaded and analyzed to address the
objectives of present study.

 

V.
Limitations of the study

1. The study is based on published data
and information. No primary data is being collected.

     
2. Every care has been taken to entice qualitative and correct data;
still secondary data    have been
collected for the purposes other than problem at hand.

     
3. The objectives, nature and methods used to collect secondary data may
not be appropriate to the present situation.

4. Secondary data may be lacking in
accuracy, or they may not be completely current or dependable.

     
5. Time constraint remained the major limitation in the study

     
6. The biasness can always be there.

            7. Before using secondary data, it
is important to evaluate them on above mentioned    factors. So, it consumes the same time as
the primary data.

 

 

 

 

 

 

VI. Need and impact of Human
asset and financial services on manufacturing sector in India and overall
Indian economy

 

India’s current ranking in the
world in factory output is 10. Its overall contribution to Indian GDP is 28%
and it engages nearly 17% of the total work force. The basis of any
manufacturing organization is governed by the quantity of money it is willing
to invest and the kind of people who are going to work in it. For transforming
the health of the manufacturing sector and in order to make it a most preferred
destination for domestic as well as foreign investors and industrialists, it is
very much important to promote both fund based and non-fund based financial
services. Manufacturing firms to withstand the global competition, and to
ensure their long term sustainability, have to invest in huge quantity in
setting up and developing its infrastructure, raw material, skill development
of its human resource, and R. Hence, the manufacturing houses need such
sources which should make the finance available as and when needed. Such a
continuous need of inflow of heavy finance can only be satisfied by the
financial services. The attention of the domestic as well as foreign manufacturers
can only be sought if the investment climate is made favorable. As the
investment climate is directly proportional to manufacturers’ way of thinking,
hence, this climate needs to be favorable in every aspect. The current
technological status, available mode of finance and human resource skill set
and its availability needs to be identified along highlighting the development
initiatives and future imperatives that are required to make India a
manufacturing hub and most preferred investment destination for both local and
international players.

 

VII. Understanding the Financial
Services and its types

 

Financial services in layman
language, simply means the services with respect to money management provided
by various organizations that are operating in finance industry of a country.
These organizations include banks, consumer finance and insurance companies,
investment funds, stock broker firms and government sponsored firms.

 

1. Asset/Fund Based Financial
Services

 

The asset or fund based financial
services help raising the finance against the assets including both movable and
immovable, bank deposits, etc. It also includes underwriting shares,
debentures, binds, venture capital, factoring, housing finance, leasing, mutual
funds etc.

 

2. Fee Based Financial Services

 

It involves higher expertise and
less financial risk. It includes merchant banking, credit rating, capital
restricting, bank guarantee, corporate advisory services, etc.

 

VIII.
Different ways to promote financial services

 

1)   The
initiative of government is must in order to reform the investment climate in
India which is essential to make India a manufacturing hub. It should encourage
promotion of more and more technological, research and development parks on the
pattern of special economic zones.

2)   Foreign
manufacturers as well as domestic manufacturers will only be encouraged to
invest in India if they will be provided with an enabling environment. Ensuring
timely availability of money, relaxing the norms and regulations governing the
banks in order to make the easier and cheaper credit available to the
manufacturing houses

3)  Government should Facilitate and encourage
merchant banking, factoring, invoice discounting facilities in order to make
the finance readily available

4)    Promoting
and help flourishing the financial service advisors who provide end to end
advise as from where will they finance come from, how much finance is required
covering the whole life cycle and production scenario of the plant in
manufacturing industry. These financial advisors also keep track of the inflow
and outflow of the money and the manufacturer does not have to worry about his
time management worrying about tracking the movement of money. They have wide
range of funding solutions available in hand which a potential taker can choose
from.

5)  Encouraging commercial banks to make finance
readily available for manufacturing enterprises. Government should frame such
policies which are a bit lenient and relaxed, and thus have an insight to performance
and financial constraints of the manufacturing units.

6)   Regulatory environment should be improved in
order to pave a way for the development and growth of the manufacturing
industry in India.

7) 
 Government of India should
facilitate the promotion of more and more credit card companies and angel
investors which will benefit both the manufacturer and the consumer.

 

 IX. Understanding the importance of human
asset in manufacturing sector in India and its impact

 

Besides promoting the various types
of financial services, it is also essential to tap, exploit and enhance the
immense talent and potential of the work force available in India. Rightfully
once said by the Walt Disney, “You can create, design and build the most
wonderful place in the world but it requires people to make that dream a
reality.” Indian work force is immensely talented and adaptable. In order
to develop an organization and ensure its sustained growth, it is very much
important to develop its human resource working in it. Continuous investment in
up gradation of their skills, knowledge and competencies is essential for an
organization if it wants a guaranteed survival in the immensely competitive
environment. The organization which does not understand the importance and
talent of its human asset cannot withstand the competition. A motivated, up to
date human work force will help an organization achieve its mission and vision.
Various modern HR policies include performance and career management,
development of various continuous improvement and learning programs. Focused on
the up gradation of employee’s knowledge, skill and abilities, programs such as
employee development should be promoted. Employee development is a joint,
on-going effort on the part of both the employee and the organization for which
he or she works. A highly skilled work force can accomplish higher goals than
an under skilled human asset. Employees’ performance needs to be enriched by
developing training and development programs if 100% potential of the human asset
needs to be tapped. The human potential is immense and if it is left untapped,
it will go waste. Human asset is the most valuable asset of an organization and
it needs to be continuously monitored and injected with performance development
programs, programs that increase the job satisfaction of employees, employee
welfare programs etc. The human performance can be appraised with the use of
various performance appraisal models. Organizational excellence can only be
achieved by investing continuously in the work force of the organization.

 

X. Benefits
of enhancing and capitalizing human potential

 

? Growth in
Sales: When good quality products will go into the hands of the consumer, the
satisfaction of consumer will result in increase in demand of the goods. Hence,
the sales will be boosted which in turn will boost the production and hence the
manufacturing unit will flourish.

? Cost
Reduction: Up to date trained and knowledgeable work force will decrease and
automatically omit the defects for the production system which will in turn
bring the cost of production down.

? Focus on
Organizational Goal

? Reduction of
time taken in creating strategic or operational changes by communicating the
changes through a new set of goals

? Organizational development

 

XI. Conclusion