Date:22/10/2008 URL: http://www.thehindu.com/2008/10/22/stories/2008102252260300.htm

Kerala

Role of service sector stressed

Special Correspondent

PAYYANNUR: The service sector plays an important role in generating employment and accounts for a major share of the gross domestic product (GDP), according to Spices Board Joint Director (Marketing) O.T.S. Nambiar.

Delivering his inaugural address at the two-day University Grants Commission-sponsored seminar organised by the Payyannur College Department of Commerce on ‘Demystifying service sector: its role in Kerala’s economic growth’ at the college campus here the other day,

Mr. Nambiar, however, warned that any hype on the role of the service sector might also push the economy into a danger zone as seen in the present economic meltdown in the United States.

Speaking on ‘International credit crisis and volatility in Indian capital markets an observation’, T. Asokan of the Kannur University Department of Management Studies, said that since Indian players in the capital market were recording positive growth, investors could benefit if they went for equity in the present scenario. He also explained how the lending crisis in the U.S. economy had created turbulence in the world markets.

A press release issued by the college said that the seminar had examined in detail the recent trends in the service sector and its contribution to the Kerala’s economy. Talking on ‘Housing and other allied infrastructure development and its contributions to the State’s economic growth’, M.C. Dileepkumar of Cochin College dwelt on how housing had become a fertile area for income multiplication. He pointed to the contradiction in large number of houses remaining vacant when many families were deprived of shelters.

Speaking on `Organized retailing’, K.G. Jose, Director, Rajagiri School of Management, Kochi, pointed out that the growth achieved by private retailers was due to the economies of scale created by them and their high level of efficiency. He said that this was no cause of concern to small retailers as they would not lose their share in the market.

Among those who presented papers at the seminar included Jagathi Raj of the Department of Management Studies, Cochin University of Science and Technology and G. Balachandran, Assistant Manager, LIC of India, Payyanur. College Principal K. Narayanan and Commerce Department head P.V. Premavalli were also present.