Posts Tagged ‘employment’

Dubai Shakeout Leaves Thousand of Indian Families Worried

Dubai Debt Fallout Leaves Thousand of Indian Families Worried

The $59-billion debt woes of state-run Dubai World, one of the largest global conglomerates, has left thousands of Indian families worried, as the region accounts for half of the country’s $25-billion remittances.

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Gulf countries employ five million Indians, out of the 25 million total strength of the Indian diaspora in 130 countries, and Dubai being a key driver of the region’s economy, a shakeout there is seen unsettling the job market — and the incomes of relatives.

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Market experts have expressed that there will be at least 25-percent contraction in the job market and there may be a ripple effect on most Middle East countries because of Dubai World bust.

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They also said that Middle East meltdown is not a last month generated phenomena 聽rather it has been there for the past one year.

Infact, people have been coming back to India for the past one year.

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Market experts and policy makers have expressed concern over the prospect of Indians employed in the Gulf losing their jobs.

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However they insist that much would depend on Dubai world Bust鈥檚 impact on the real economy there and employment.

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Many relatives of Indian expatriates in the Gulf have expressed concern and worries over the prospect of the loss of jobs in Gulf 聽in the wake of Dubai World Fiasco !!

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Many of families have taken huge amount of home loans to construct houses or to buy flats.

(With the dependence of paying it through the remittances they generally receive from their relatives working in Gulf).

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Now, they have worries like if their close family member working in Gulf loses the job then it will get impossible to repay the loan amount in full.

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In Andhra Pradesh, which accounts for the largest share of remittances from the Gulf after Kerala, the realty industry feel there is an underlying worry that the Dubai World episode may just be the tip of the iceberg.

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Experts over there feel that things might go from bad to worse when the Dubai companies announce their financial results in December and January and many more could lose jobs.

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Analysts, nevertheless, maintained that while the future plans of Dubai World in India may be affected, the existing ones may not suffer much.

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POTATOES鈥︹︹OOD SOURCE OF VITAMIN M (MONEY) Part Two

Hello Friends, just an extension of our previous blog on Commodity Check where we touched upon the aspects like production and price movement of Potato.

Potato Position in Indian Snacks Market

Potato Position in Indian Snacks Market

Now we would read into the consumption pattern and position of Potato in Indian Snacks Market and many more related aspects in this regard.

Indian Snacks Market

Potato consumption is expanding strongly in developing countries, where potato is an increasingly important source of food, employment and income.

The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half the market share, and has an annual growth rate of 15-20 per cent.

The unorganized snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year.

There exists consumer as well as bulk markets for potato wafers and chips even in far flung rural areas owing primarily to the following reasons:-

路Rapid urbanization and improving standards of living

路Easy availability

路Convenient packaging

路Affordable prices

路Nutritious values

Income growth in India has led to an increase in consumption of Western-type goods, such as French fries, which continue to be this country’s most important potato export product.

Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers.

Though there exists some international as well as national brands but majority of the market base is under the control of local manufacturers.

PepsiCo India has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkand, West Bengal, Kashmir and Maharashtra for the supply of potatoes.

Potato sourced under contract farming accounts for roughly 55% to 58% of the US giant’s annual snack making requirement.

The company is trying to procure potato through contract farming from Bihar and Jharkhand and process upto 30,000 ton of potato at its Sankrail factory in West Bengal by 2010.

Strengthening Stimulus

Stimulus spending and festivals strengthening demand may add to on-going demand, the prices can be driven by supply-side bottlenecks.

India’s industrial output grew at its fastest pace in 22 months in August, 2009.

Inflation is rising; production is rising fast, so logically the data does suggest that it makes sense to move.

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Monsoon Deficit Narrows But Just Slightly

monsoon deficit

The rainfall in India seems to have improved a little with the monsoon shortage being at 28% below average for the week ended August 16.

While as on August 12, the overall rainfall in the country was 29% below normal.

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However, rainfall during June 1 to August 16 was at 434.6 mm against the historical average of 602.1 mm while the rainfall in the northwest was 40% below average as on August 16 while in northeast it eased slightly to 32%.

However, the shortfall in central India increased to 21%.

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The Impact Of Significant Below Normal Monsoon:

The current situation definitely does not bode well for the agriculture output.

While in the past, the drought like situation has severely impacted the economic growth (1%-2%), this time the impact could be lower due to:

1. Agri contribution to the overall GDP has been coming down and now stands at ~17% (v/s > 45% in 1970s and > 30% in 1990s)

2. Irrigated land to total land ratio has been improving,

3. National Rural Employment Guarantee Scheme (NREGS) and Farm loan waiver,

4. Significant increase in budgetary allocation to rural development.

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However, if the overall monsoon remains 20-25% below normal and the spatial distribution does not improve, it is likely that FY10 GDP forecasts may be revised downward by 50-100bps.

Increased spending by the Govt and faster implementation of some of the infrastructure projects may limit the damage to ex-agri GDP growth as mentioned above.

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However, Worst affected monsoon deficit areas will have problems of food availability, employment, and drinking water.

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Moreover, India is at a risk of 60-100 basis points drop in GDP growth forecast of 6.4% for FY 2010 while agriculture growth is decreasing by around 5-8% in the current fiscal.

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In addition, rice production during the kharif season this year may decrease by about 10 million tonnes due to declining monsoon in the country while it produced nearly 100 million tonnes of rice in both rabi and kharif seasons in 2008-09.

However, some shortage in production of oilseeds and sugarcane is also expected.

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However, macroeconomic consequences may not be very serious due to the weak monsoon owing to the reasons stated above.

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The Impact Of Significant Below Normal Monsoon:

India Inc created 3,00,000 jobs in US: Study

India Inc created 3,00,000 jobs in US: Study

India Inc created 3,00,000 jobs in US: Study

When the Indian outsourcing industry is being blamed for taking away American jobs, a study has found that corporate India has created employment for 3,00,000 people in the US between 2004 and 2007.

An India Brand Equity Foundation study released in Washington on Wednesday by Commerce and Industry Minister Anand Sharma mentioned USD 105 billion contribution by the Indian industry to the US economy during 2004-07.

“This revealed a story of commitment to optimise and to invest in the future of the relationship,” Sharma said.

The USD 50-billion Indian outsourcing industry has come in for a major attack in the US, bolstered by President Barack Obama’s calls to the US companies to move from Bangalore to Buffalo.

Concerned over the backlash in the US, the Indian industry has been trying to lobby with influential Americans and opinion leaders about the benefits that the American can derive from developing economies.