Mumbai: Noted banker Deepak Parekh stated that the e-commerce service sector in India would emerge as the silver lining amidst the job crisis caused by Covid-19 pandemic. Parekh felt that the joblessness was a huge issue in India especially with over 1,00,000 emigrants returning back to the country back from the gulf countries. Parekh, who is part of the Maharashtra government’s 11-member special committee to advise on post-Covid-19 economic revival policies, said that joblessness scenario would continue to be a challenge even if the migrant labourers who had left the state, were to return back to work in Maharashtra in a month or two.
Speaking on Leadership from the front in crisis, at a virtual conference organised by Ashoka University on June 6, Parekh predicted that e-commerce companies would start hiring in large number and would invest in warehouses with rise in demand for their services. While the jobs may not be high end salaried ones, but they will be just good enough for sustenance like that of delivery boys.
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He revealed that 70 % of India’s GDP was contributed by the service sector, comprising of workforce from the farm labourers, street vendors to casual labourers in factories and the contract labourers which unfortunately constituted the informal sector.
The chairperson of HDFC Bank also felt that the solution to the job crisis lay in pushing the services sector more, as “Services can be the only sector where jobs could be created in India” in the current economic scenario.
He also felt that joblessness would continue to be huge challenge also because of 10-20 % retrenchments from shops and companies -small, medium or large-owing to realisation that they ensure same level of productivity with a lesser workforce. “Manufacturing companies would say that they cannot afford so many employees and that their demand has come down and that they could do with higher productivity standards,” said Parekh.
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