6 ways Modi’s ‘Make for India’ campaign will create jobs

imageAs India embarks on the ‘Make in India ‘mission that coincides with our triumph in the outer space, a new era marked by the philosophy of build rather than buy begins that will change the way we do business in India.

The campaign certainly provided the thrust required to push the slowing India economy on the growth mission. TimesJobs.com spoke to industry experts to decode the impact of “effective governance” on job creation and skills development.

  1. Kick Start Robust Hiring as Government invests in Industrialisation

The Make in India campaign will kick in robust hiring in the coming months with the Union Government investing more in industrialisation and devising policies to boost employment and thereby contribute towards the GDP.

Ravichandran Purushothaman, president, Danfoss India

  1. Enhance GDP Contribution from manufacturing

More than half of the Indian workforce contributes only 14% to GDP; this campaign will help boost India’s economy by enhancing GDP contribution from Manufacturing. It will have a cascading effect on all sectors including ours through creation of millions of jobs and many opportunities for skill development.

Amit Malik, chief human resource officer, Aviva life Insurance India 

  1. Focus on manufacturing will drive growth in other sectors

With focus on manufacturing, which is a core industry sector for job creation, the government has set the juggernaut rolling in the right direction. The focus on manufacturing will drive the development of other key sectors like infrastructure and energy as they will serve as growth enablers. This cascade effect across sectors will immensely benefit the youth entering the workforce. We expect the impact of the initiatives and schemes to be felt over a period of time. If the intent is translated efficiently into execution, we can expect the job market to grow aggressively over the next five years.

Moorthy K Uppaluri, CEO, Randstad India

  1. Make in India will promote human capital at grass root level

The demand for skilled manpower is widespread in the international labour market. Taking steps towards addressing this demand, the Prime Minister has emphasized on skill development in his ‘Make in India’ and ‘Deen Dayal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY)’ campaigns. These initiatives create a robust platform to promote human capital at grass root level. It has also raised the confidence of Indians staying overseas to invest in high growth sectors like manufacturing, biotechnology, construction, among several others.

Sudhesh Giriyan, vice president & business head, Xpress Money

  1. Transforming Domestic Manufacturers into Global MNCs

After almost two years of minimal growth due to the global slowdown, the manufacturing industry is slowly recovering. By streamlining regulatory processes and introducing a dedicated cell to address the queries of business entities within 72 hours, the government has made it its mission to have global companies invest in India. This could also potentially spark off a chain reaction leading our domestic manufacturers to become global MNCs.  With the mechanisms that the Prime Minister has put in place, this ‘Make in India’ campaign could spell great success for our economy, boosting job creation and a higher level of growth.

Udit Sheth, executive director, Setco Automotive

  1. Enabling Indian manufacturing to become globally competitive 

After a long time the government has put its might behind growing the manufacturing sector. Manufacturing is key not only for expanding the GDP but most vitally for job creation. His vision of FDI – ‘First Develop India’ and make the country an attractive business destination for domestic and foreign investors is laudable. The success will however come from effective implementation in dealing with various factors required for Indian manufacturing to become globally competitive.

Harsh Pati Singhania, director JK Organisation & MD JK Paper

From: http://content.timesjobs.com/


Budget 2014: Focus on investment not on employment

The employment push is not visible in this budget. The focus is more on investment which largely benefits the large corporate houses. T Muralidharan chairman & managing director, TMI e2E Academy, in his post-budget reaction to TimesJobs.com Bureau said that the focus is more on investments in jobs sector but how will these jobs be created?. He highlights the good and bad of the Budget 2014 for our readers. Where it scored? FM acknowledged that migration is a reality in the context of creating 100 smart cities. This means that migration is not a “bad” word any more in skill industry. “ Tourism will be a focus industry for employment creation. Rs 500 crores have been allocated to promote tourism on five themes. This is a good sign for launching course in this domain. “ Multi skill focus and the need to integrate employment and entrepreneurship was mentioned. This is big departure from the current policy of insisting that all skill development should lead to employment and employment is the main measure of success. Self-employment based skill courses will get more attention and support from the skill ministry. “ On Aajeevika program run by the Ministry of rural development, he talked of concessional loans at 4% for funding local entrepreneurship. This is a great sign. “ Revamping of apprenticeship program was announced. It will include MSME because this where bulk of new employment is created. Hopefully the Apprentice scheme for MSME will be game changer for both MSME and the fresh graduates. “ The MSME sector finally got a lot of importance in this budget with a 10,000 crore fund, a revised definition of MSME, a recognition that the service industry MSME are as important as manufacturing MAMEs. “ Employment exchanges will be revamped for career and job counselling. This is not a new idea. But the implementation is difficult since the jobs are in the private sector about which the current employees know very little. Privatisation is the only way. “ Young leaders program with a budget of 100 crore has been created. What it lacked? Not spell out in detail about the role, budget of the new skill ministry. “ Not commented on the STAR program. Does this mean that since the Rs 1000 crore was sanctioned in the interim budget for 2014-15, the scheme will continue? “ There was a big demand to scrap service tax for skill programs of all types. Today the exemption is subject to certain conditions. Because the service tax is paid by the unemployed youth’s parents. “ There were expectations of a big jump in the skill budgets. Some people talked about five times growth. This was not spelt out. “ The need to increase minimum wages to make the compensation fair and in alignment with the food inflation was not even attempted. This is a big disappointment. The focus seems to be on skilling and on ramping up the Manufacturing and Infrastructure industry. The employment creation per crore of investment is many times bigger in service industry. He did not spell out how employment will be created in the economy. Skilling increases supply of manpower. If the demand is not there, this effort will be counterproductive. The excess supply will impact the compensation which is already happening.

India most optimistic on hiring plans for Apr-Jun quarter: Survey

NEW DELHI: India has emerged as the most optimistic nation in terms of hiring plans for the next three months and sectors such as aviation, IT & ITeS and retail are likely to see an increase in payrolls.

According to the Employment Outlook Survey released today by workforce solutions major ManpowerGroup, 41 per cent of the surveyed Indian employers are expected to add on to their staff levels in second-quarter of this calender year.

Government initiatives, increased industry participation, rise of start-up ventures and emergence of India as an investment destination are some of the key factors that have fuelled the economy’s growth,”ManpowerGroup India Group Managing Director A G Rao said.

“Employer hiring intentions remain positive in all seven sectors covered in the survey, primarily driven by aviation, IT & ITeS and retail sectors where employer hiring sentiment appears to be improving,” Rao added.

Employers, across most sectors, in India had been apprehensive of hiring due to uncertainty in overall business environment. However, things are expected to improve in 2014, the survey that covered 5,302 employers in India said.

“As hiring is set to rebound in India, competition for talent is likely to prove intense. Upturn in demand for outsourcing from the US and other countries will boost prospects for individuals with engineering and programming skills,” ManpowerGroup President Darryl Green said.

The survey noted that the headwinds encountered in many global labor markets may be moderating amid numerous signs of measured optimism among employers.

Staffing levels are expected to increase in 38 of 42 countries and territories covered under the survey, ManpowerGroup said.

The strongest hiring plans across the globe are expected from employers in India, Taiwan, New Zealand, Turkey and Costa Rica.

Conversely, the weakest second-quarter forecasts are expected from employers in Italy, the Czech Republic and in France where the net employment outlook seems to be slipping into negative territory for the second time in the past four quarters.

“There is improvement across industries and geographies. Although the improvement is still very cautious and not as robust as we’ve seen in the past, there are signals that confidence is starting to take hold,” ManpowerGroup Chairman and CEO Jeffrey A Joerres said.

Source: techgig.com

You can be an angel investor too! But it takes more than a fat wallet to be one

It takes more than a fat wallet to successfully pick a promising company from amongst the hordes of aspirants in India’s booming startup sector.

In the past one month, Vikas Kumar, a 32-year old lawyer has been taking lessons. The Delhi-based professional has attended two classes that he hopes will prepare him to join the ranks of a new class of investors, those backing startups.

“I will soon make my first investment, in a prepaid mobile wallet startup,’ said Kumar a partner at DH Law Associates who expects to act as the legal advisor for the new venture.

Fired by tales of stellar returns and the thrill of being part of something new, dozens of wealthy Indians are laying out money to buy a slice of the action in India’s booming startup sector. But they soon discover that there is more to being an angel than just cutting a cheque.

Every week at least five startups are launched in India of these typically just one survives to deliver big-ticket returns to eager investors. The ability to pick that one winning company is what rich Indians are now aiming to acquire.

Industry reports estimate that there are about 500-600 active angel investors in India, many of whom are part of fastgrowing networks such as the Indian Angel Network, Mumbai Angels as well as several city-based networks in Hyderabad, Chennai and Bangalore.

“But there is definitely a shortage of specialists who are willing to put their own skin (money) in the game,” said Raman Roy, a cofounder of IAN who has invested in over 18 startups. IAN formed in 2006 has over 250 members some of whom have received returns of about 32 times the amount they invested, underscoring the attractiveness of this new asset class.

But with just about 50-60 people skilled enough to lead investments in very young ventures there is a huge mismatch in demand and supply of early stage capital. Last year, about $608 million worth of early stage deals took place in India, a fall from $700 million in the previous year according to consulting firm, Ernst & Young.

“There are hundreds of people working in top positions in MNCs with enormous surplus capital that is lying idle,” said Manish Singhal, founder of LetsVenture, a technology-based platform that aims to link potential investors with startups.

The IIT-Kanpur graduate is hoping he can create a marketplace of investors in India that can address a growing need for intelligent capital. “A person with surplus liquid capital of Rs50 lakh or a net worth of at least Rs10 crore and a high degree of passion for entrepreneurship is a potential angel investor,” said Singhal, a former executive at Motorola and digital software maker Ittiam systems. His venture will connect startups while also train high net-worth individuals (HNIs) in the intricacies of angel investing.

Savvy investors are of the view that those entering this space must build up a portfolio of at least 10 investments before they can hope to expect a return. Moreover going solo is a surefire way to lose money particularly in the early days.

“It’s (angel investing) a team sport, only to be played with seasoned hunters,” said Sharad Sharma, cofounder of software product think-tank, iSpirt who lost all his money when he first began as an angel investor in 2004.

You can be an angel investor too! But it takes more than a fat wallet to be one

“All four startups went down-under. I learnt the lesson,’ said the former chief of Yahoo’s research division in India who has since built up a portfolio of 22 startups including security software maker Druva. Sharma said he invests only when a specialist has put his money on the table and never exits early.

“It’s a problem of more nurses and very little number of surgeons in a hospital,” said Sharma who believes there is need for more investors with knowledge of specific domains who can lead the generalists. Typically a deal anchor has to invest about 20% of the capital, before it is presented to other members in an angel network.

Slowdown over? You may see a 15% hike in salary this year

CHENNAI: All the talk about the revival after the slowdown is going to finally show up your wallets. Most companies are approaching the appraisal season and HR experts say early indications are that there will be a marginal increase hikes this year.
 Most companies are approaching the appraisal season and HR experts say early indications are that there will be a marginal increase hikes this year.
“This year has been cautious but has not been as bad as last year, so hikes will be better than last year, albeit marginally,” said Ashok Reddy, co-founder of staffing company TeamLease Services. Annual hikes could be between 12% and 15%, slightly higher than the 10-12% last year, as companies have to rate their workforce, he said.

The bonuses or TVPs (total variable pay), however, would remain the same range as last year – about 18%. TVPs or bonuses are a percentage of the salary given out lump sum payments to employees at the end of the financial year based on their performance, and the quantum of bonuses vary for employees different levels of management the company. Over the last few years, more companies are taking to the concept of TVPs and the ratio of fixed pay versus variable pay is changing as companies are looking to differentiate and reward employees based on performance.

“Early indications show that payouts will be the same range as last year. Good performers will get around 20-25%, and average performers around 10-12%,” said P Thiruvengadam, leader of human capital advisory services at Deloitte.

Bonus payouts also depend on the performance of the sector and, hence, employees working for sectors like pharmaceuticals, healthcare and life sciences could expect good payouts while those manufacturing and infrastructure will be for a disappointment.

Also, the way appraisals are done is changing this year with companies focusing more on knowledge-based performance and specialized performance rather than taking a blanket approach.

“Companies are taking people with special, niche skills and compensation will be done based on their contribution. Companies will look at retaining special talents rather than rewarding people just because they have been working with them for long ,” said Rajiv Krishnan, head, people & organization, EY. And for people looking to shift organizations post-appraisal, the season looks good as more companies are offering new hires higher joining bonuses (money paid by a company to a prospective employee as an incentive to jothe company). To maintaparity between pay packages of existing employees and new hires, more companies are taking to offering high joining bonuses rather than revised pay packages for new/lateral hires, Krishnan said.

source: techgig.com

HP may cut 34,000 jobs by October due to falling PC sales, adverse market conditions

Struggling with falling PC sales and adverse market conditions, US-based technology giant Hewlett- Packard (HP) expects to eliminate up to 34,000 jobs by October this year as part of its multi-year restructuring programme to cut costs.The company will incur about $4.1 billion in aggregate charges, which includes severance and other charges.

In July last year, HP had estimated eliminating about 29,000 positions through fiscal year 2014 as part of its restructuring programme, which was started in 2012. However, details on which locations would be impacted by the decision were not disclosed. “Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15 per cent of those 29,000 positions or a total of approximately 34,000 positions,” HP said in a filing to the US Securities and Exchange Commission (SEC).

The programme will now cost the company about $4.1 billion in aggregate charges, instead of the earlier estimate of $3.6 billion, it added. “HP expects approximately $3.5 billion to relate to workforce reductions, including the EER programmes, and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation, and other items,” it said.

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Europe: Indian IT’s new growth driver

North America may account for the lion’s share of India’s IT exports but, growing demand for outsourcing services from Europe is expected to drive the $108 billion IT sector in 2014, industry body Nasscom said.

“Europe is growing faster than the US. That is something we saw this year and this will only gain momentum. There is a lot of latent demand in the region, which will drive growth for the sector,” Nasscom President Som Mittal told PTI.

North America accounts for over 60% of revenues of Indian IT exporters, while the European region contributes about 20% with the UK making up for the bulk of that share.

“The share of the European region has been growing… The market is now more open to outsourcing and in the coming year, we will see a lot of new projects coming up, which is a huge opportunity for our domestic companies,” he said.

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