VI. Need and impact of Humanasset and financial services on manufacturing sector in India and overallIndian economy India’s current ranking in theworld 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 anymanufacturing organization is governed by the quantity of money it is willingto invest and the kind of people who are going to work in it. For transformingthe health of the manufacturing sector and in order to make it a most preferreddestination for domestic as well as foreign investors and industrialists, it isvery much important to promote both fund based and non-fund based financialservices. Manufacturing firms to withstand the global competition, and toensure their long term sustainability, have to invest in huge quantity insetting up and developing its infrastructure, raw material, skill developmentof its human resource, and R.
Hence, the manufacturing houses need suchsources which should make the finance available as and when needed. Such acontinuous need of inflow of heavy finance can only be satisfied by thefinancial services. The attention of the domestic as well as foreign manufacturerscan only be sought if the investment climate is made favorable. As theinvestment climate is directly proportional to manufacturers’ way of thinking,hence, this climate needs to be favorable in every aspect. The currenttechnological status, available mode of finance and human resource skill setand its availability needs to be identified along highlighting the developmentinitiatives and future imperatives that are required to make India amanufacturing hub and most preferred investment destination for both local andinternational players. VII. Understanding the FinancialServices and its types Financial services in laymanlanguage, simply means the services with respect to money management providedby 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 FinancialServices The asset or fund based financialservices help raising the finance against the assets including both movable andimmovable, bank deposits, etc. It also includes underwriting shares,debentures, binds, venture capital, factoring, housing finance, leasing, mutualfunds etc. 2.
Fee Based Financial Services It involves higher expertise andless financial risk. It includes merchant banking, credit rating, capitalrestricting, bank guarantee, corporate advisory services, etc.