MUMBAI: Employers worldwide face the acutest talent shortage since the recession, says a survey by HR consulting firm ManpowerGroup. According to the Talent Shortage Survey, of the over 42,000 employers surveyed globally, 40% are experiencing difficulties filling roles, the highest level since 2007. 48% of Indian employers report difficulties filling job vacancies due to talent shortages.
As skills need to change rapidly, employers are looking inside their organizations for solutions, with 36% of Indian employers choosing to develop and train their own people. In the IT sector, businesses are reporting the most marked talent shortage in several years. Lack of soft skills (36%) and looking for more pay than what is offered (34%) are the top reasons employers in India cannot fill the positions, says a statement from ManpowerGroup. AG Rao, group managing director of ManpowerGroup India, said: “The demand index for IT and accounting professionals have been on a continuous rise.
Focus on technology up-gradation and better financial access will drive the sector’s growth in the coming months. Further, to provide financial services in rural areas as an initiative by the government and Reserve Bank, the demand is projected to grow across core and support functions. While banks struggle to keep up with increasing demand and traditional non-banking finance companies (NBFCs) are still in the process of learning the ways of the online business, tech startups are one of the major breakouts today, and this could potentially define the shape of the financial services industry”.
NEW DELHI: Questioning the methodology adopted by Moody’s Finance Ministry on Thursday said the global agency had ignored reforms initiated by the government. It should not wait “till infinity” for them to take root before upgrading the country’s sovereign rating.
“Our concern was mainly about the methodology of the whole process… Of course, the rating agencies are free to arrive at their own conclusion…,” economic affairs secretary Shaktikanta Das said. “I thought the due process has to be followed, and you cannot jump the gun,” he said, alluding to Moody’s making certain comments in public a day before having met the Finance Ministry.
Calling the reform process slow and gradual with muted private investment and bad loans posing a challenge, Moody’s said that it could upgrade India’s rating in 1-2 years if it is convinced that reforms are “tangible.”
India’s sovereign rating by Moody’s stands at ‘Baa3’, the lowest investment grade — just a notch above ‘junk’ status.
Das added: “We found the methodology to be deficient. That is something we pointed out. So we expressed our serious concerns about the methodology that they are following. Then, there were other issues. We explained to them about the reforms gathering roots and developing sufficient depth.”
During the Finance Ministry meeting on Wednesday, representatives from Moody’s are learned to have said that a rating upgrade could be a reality when the benefits of reforms could be felt on the ground, and the country’s banking sector stabilizes.
Das said: “The depth of the reforms in India cannot be doubted. It is a unidirectional process for the last several years, especially in the last two years. The pace of reforms and the pace at which the government undertakes reforms due to weight have to be given. “You cannot say that I will give zero weight, and I will wait till infinity to see that these reforms take roots…I don’t think…it should not be a kind of bottomless pit.”
Domestic reforms to cushion India from global shocks
Addressing the BRICS investment seminar here ahead of the 5-nation Summit beginning in Goa tomorrow, he said the government had put FDI on automatic route in almost 90 percent of the areas eligible for foreign direct capital.
“Over the last two-and-a-half years, most of the sectors have been reviewed, and we now have probably the most open FDI policy in the world, with 90 percent of FDI coming in through the automatic route,” he said.
Stating that the ease of doing business has improved massively since the Modi government came to power, Jaitley said many sectors had been brought into the automatic route. Now we don’t have any instance of cases pending indefinitely before the Foreign Investment Promotion Board.
“We have learned that even though there is a contraction as far as global growth is concerned, at least by domestic reforms, we can neutralize the impact of the ongoing global slowdown,” he said.
On India’s global competitiveness ranking, which has improved to 39 this year, he said many policy changes have added to the ease of doing business in the recent past.
Jaitley said various policy measures and “every significant decision of the government are aimed in one direction — that is to promote economic activities and make India more investment-friendly.” “Our ranking both in the ease of doing business and also in global competitiveness index has moved up significantly in the last few years. And this has been aided by a large number of policy initiatives which the government has taken,” Jaitley said.
On the need for more cooperation between the BRICS nations (Brazil, Russia, India, China, and South Africa), he noted that even though it has improved in the past, there is still room for more periodic meetings to expand its areas within the five-nation bloc.
He also said the grouping has many more proposals, such as a rating agency and a research institution on its agenda. The BRICS nations also face many challenges, adding that together they represent over 40 percent of the global population, a large portion of global GDP, and a significant part of FDI flows from each other.
I was an Indian resident till 15th May of this year. Till the last year, I was filing my income tax returns in India. I have been working in the UAE from 16th May 2016 in a construction company and earning salary income. My wife and mother are in India, and I transfer the money for their living expenses through my NRE a/c or through saving a/c of my wife and mother. My query is, am I liable to pay any tax in India for the salary income I earn in the UAE or for the money that I transfer money to my wife and mother? Also, am I liable to file income tax returns in India from the fiscal year 2017 onwards? Kindly note that I do not earn another income in India.
– Ryan Shetty
Assuming that you will spend less than 182 days in India during the financial year ended March 31, 2017, you will be treated as a non-resident for 2016-17. Your salary earned overseas will not be taxable in India. Just take care that you receive the employer’s salary in the UAE itself, either in cash or in a bank account in the UAE. You can then remit it to your own NRE account in India or directly to your wife’s or your mother’s accounts in India. It would help if you never asked your employer to remit the money directly to your NRE account in India, as that may render the salary taxable in India because it is “received in India.” You will not need to file tax returns in India for the financial year ending March 31, 2017, unless India’s income (including the income earned from April 1, 2016, until May 15, 2016) exceeds Rs 2.50 lakh.
A council of finance ministers from India’s union and state governments on Wednesday failed to finalize the main rate of the goods and services tax. It will again meet next month, raising concerns that the new sales tax might miss April’s deadline. Union and state finance officials met for two days in New Delhi to resolve their differences over the rates and the administration of the tax. They will again meet on Nov. 3-4.
While the meetings could not break the deadlock, the contours of the discussions suggested India might end up with a tax structure with multiple rates. Experts say that the best taxes have to be low, flat rates, and few exemptions and warn that the proposed GST for India may – due to its relative complexity – deter compliance in a country where many businesses are skilled at minimizing their taxes.
“Having more rates will complicate the situation,” said M.S. Mani, senior director at Deloitte Haskins & Sells LLP, adding uniform rates in states would simplify the current tax structure. The new tax is a signature reform of Prime Minister Narendra Modi to make India an investor-friendly destination. The measure would harmonize a slew of federal and state levies. Supporters say the rollout of the new tax would boost the country’s economic growth by as much as 70 basis points. But a compromise-ridden tax threatens to rob any potential gains.
At the meeting, some states sought to impose a surcharge on luxury products such as sparkling water and tobacco products to keep lower rates on essential food items, Kerala Finance Minister Thomas Issac told reporters.
But the union government did not support the proposal, saying it would have a cascading impact, a senior Finance Ministry official told reporters after the meeting. The ministry has proposed four tax rates, with the highest at 26 percent for about 20-25 percent of taxable items. Other slabs included 12 percent for food and fast-moving consumer goods (FMCG) and 4 percent for precious metals like gold.
Finance Minister Arun Jaitley, however, remained optimistic that the November meeting would resolve the differences, paving the way for the tax’s implementation from April 1. To hit that timeline, union and state lawmakers need to pass key bills in this calendar year. Even then, there will be a race against time to set up IT systems and ensure millions of businesses are ready to file returns online.
US Trade Representative Michael Froman believes that India needs to do more on the foreign direct investment front. Froman, who is in India for the Trade Policy Forum (TPF), also stressed addressing the intellectual property rights (IPR) issues. In an interview with BusinessLine, Froman shared his thoughts on the bilaterals between the two countries and whether the potential has been realized. Excerpts:
What is the US agenda for the 10th round of TPF?
The Trade Policy Forum provides an opportunity to discuss core areas within the relationship, including agriculture, services, manufacturing, and intellectual property rights (IPR). I think we have made important progress in each of these areas, but there is still more to be done, and this is a good opportunity to focus on that.
In which areas do you think full potential has not been realized?
The US and India are two large economies, currently trading just over $100 billion, which speaks to the fact that there is more than can be done. The relationship may benefit from more regulatory reforms, transparent rules and regulations, and address impediments to investment. There is a lot of innovation in India in manufacturing and services. We are interested in discussing further steps to implement strong intellectual property rights laws to support that environment.
India has recently opened up several sectors by easing foreign investment rules. Where do you see the impediments?
There have been some important steps in opening up certain sectors, but there continue to be impediments in certain retail, financial, and professional services sectors, among others.
On the WTO solar panels dispute concerning domestic content requirements (DCR), India has said it will be implementing the ruling in the next phase and not immediately. Does that concern you?
We strongly support efforts by India and other countries to develop renewable energy and deploy solar panels and other sources of renewable energy. This case was important because it underscored that local content rules lead to more expensive and less efficient solar panels, which are not interested in expanding renewable energy supply. We will continue to work with India, an important partner in the Paris climate change negotiations and broader areas of energy cooperation, to help expand our cooperation in renewable energies.
While the US filed a case against India on DCR in its solar programs, several US States were found doing the same. Isn’t that a double standard?
In the poultry dispute, India said it had made the required changes in import rules as per WTO ruling. Why is the US still not satisfied?
The US and India’s technical teams are talking to assess whether India’s actions will bring it into compliance with the WTO ruling. We have expressed concern with the measures put in place in July. We are now focused on reviewing an amendment that the Indian government recently put out to determine how it affects its compliance with its WTO obligations.
During the recently concluded India-US Strategic and Commercial Dialogue (S&CD), it seemed the Bilateral Investment Treaty (BIT) talks had been put on hold. What is your reaction?
Prime Minister Modi has made clear that he would like to improve India’s business environment for investment. We think that the negotiation of a high-standard Bilateral Investment Treaty could be consistent with his promoting Make in India and attracting investment. The US and India have their own model BIT, and we have had a good, ongoing dialogue about the differences within our models and whether they may be bridgeable.
In the Nairobi Ministerial, the US and India had a difference of opinion on whether the Doha Round should be continued. What are the new issues you are planning to introduce?
India has been an active participant in helping to rejuvenate the WTO, both in understanding the need to take new approaches to outstanding issues and exploring new issues. Over the last year, there have been several good discussions in Geneva about what new issues might make sense to pursue. Whether it’s around e-commerce, small- and medium-sized enterprises, or others, these are issues WTO Member representatives in Geneva will continue to discuss to determine the best way forward.
We are now focused on how the policy will be implemented and will continue the dialogue with India on IPR issues, both under the National Policy and more broadly. There’s a lot to be done to address these IPR issues. But the sign of a good, strong, mature trade and investment relationship is one in which we can engage frankly with each other over our differences, even as we cooperate in areas of common interest.
India’s PNB Housing Finance Ltd and Varun Beverages are looking to raise as much as $630 million combined from initial public offerings (IPOs) next week, underpinning a surge in first-time share sales in Asia’s third-largest economy.
Indian companies have raised $2.9 billion through IPOs in the first nine months of this year, a 171 percent jump from a year earlier and the best run since 2010.
PNB Housing Finance Ltd, the fifth-largest mortgage lender by India’s assets, sells new shares to rise to 30 billion rupees ($450.5 million) in the second-largest IPO this year. According to an announcement on Tuesday, the sale will open on Oct. 25 and close on Oct. 27.
The lender has set a price range of 750 rupees to 775 rupees a share. Indian state-run Punjab National Bank, which owns 51 percent of the lender, will see its holding diluted to about 38 percent, while Carlyle Group’s holding will drop to about 37 percent from 49 percent. Neither Punjab National Bank nor Carlyle will be selling shares in the IPO.
PNB’s share sale will be the second-largest this year after private-sector life insurer ICICI Prudential Life Insurance Co Ltd raised 60.57 billion rupees last month in the biggest local IPO in six years.
Varun Beverages, one of the largest bottlers for PepsiCo Inc, is looking to open an IPO to raise 11.5 billion rupees to 12 billion rupees on Oct. 26, two banking sources with direct knowledge said. Varun filed for the IPO in June. Kotak Investment Banking, Bank of America Merrill Lynch, JM Financial, JPMorgan, and Morgan Stanley managed the PNB Housing IPO. Kotak, Axis Capital, Citic CLSA, and Yes Securities are managing the IPO for Varun Beverages.
Are you looking to hire temporary or seasonal workers during your company’s busy season? If so, you need to make sure to find committed, passionate, and reliable temporary staff that will keep your business going. During summertime or peak work seasons, it often becomes necessary to hire temporary and seasonal employees to keep up with the increased workload. As such, hiring smart temporary employees or contract workers to fill vacancies instead of full-time workers can be a wise option for many companies. However, finding temporary employees can be challenging because temp workers don’t always have the same vested interest in the company, nor do they know your specific business as most long-term employees do.
Part-time work and temporary positions are becoming popular choices among fresh graduates looking to gain experience. For companies looking to hire the best temp workers, temporary staffing agencies are a great resource to aid in the recruitment process. The staffing agencies work with industries of all types and sizes, which can be beneficial for companies to find the right fit for their organization. To ensure that you hire the best talent and those part-time employees take their job seriously, here are some tips you can use to find the right fit for your business.
Create Specific Job Descriptions
Using the same old job descriptions will negatively impact your recruitment process. Make sure to create a specific job description using up-to-date terminology to give an accurate summary of what the role entails. There must not be any confusion on what skills and qualifications are necessary to perform the job. It is essential to list out everything you absolutely need in a temporary worker. Clearly mentioning the skill required for the job is crucial because you need to be sure that the worker you hire will be competent from the start. Your job description will also help the recruitment agency in sending you the best candidates for the job.
Perform a Background Check
Rushing through the screening and onboarding process may land you in trouble. Even though the temp employee would be working with your company for a short period of time, checking background and all the necessary documents is imperative. Hiring workers without verifying their citizenship or work authorization documents from the Department of Immigration can lead to state and federal investigations, hefty fines, and even possibly losing your business license. In addition to checking all the required documents, conduct criminal background checks before hiring candidates.
Find a Reputed Staffing Agency
Finding the best talent depends largely on the recruitment firm you choose. Always team up with a staffing agency with an extensive network of contacts and experience with industries of all types and sizes. By choosing an experienced and reputed temp staffing agency, your job posting will reach the right candidates. Their expert team of HR will also help you in the selection process, which often includes pre-screening candidates, administering tests, and conducting initial interviews.
Carefully Plan the Selection Process
To hire the best temp worker, your selection process should include pre-screening candidates and a two-step interview. With the help of pre-screening, you can make sure that only the right candidate comes for the interview. It enables the interviewer to look over candidates’ credentials and applications to determine whether they should be called in for an interview.
The next step to enhance your interview process is using a two-step interview to screen potential job candidates more thoroughly. For this, first, you may interview potential candidates over phone or video conferencing. Next, call the shortlisted candidates for a second in-office interview. At this point, you need to formulate targeted questions to make sure you find the perfect fit for your company.
Experts advise you to start planning even before you decide to buy a home. The habit of saving smaller amounts will also help to meet your down payment. Here are five ways in which you may save money to pay the same.
Plan and budget
If you plan to buy a home in the next couple of years, it is important to start setting a budget from now. It is also important that you check your home loan eligibility to know the exact amount you will need as a down payment. It would help if you eliminated avoidable expenses to accumulate funds for a down payment.
2. Liquidate smaller savings
If you have saved in precious metals like gold or hold bonds, you may liquidate these. This money may be beneficial in meeting the down payment needed once your home loan is approved. However, you must retain some savings to meet any emergencies.
3. Ladder your savings
Investing your extra money in corporate deposits (CDs) is a good way to earn decent returns. These are relatively low-risk investments and are easily accessible. One way to maximize your returns is to spread your savings in different CDs with varying maturity dates. This is known as laddering and provides the flexibility that adjusts your savings based on the interest rates. It helps you invest when the returns are higher and ensures you do not have to invest longer periods in lower interest rates. These funds may be used to make the down payment towards your property before the lender disburses the home loan amount.
Ensuring you pay the entire credit card bill each month ensures you do not pay the huge finance costs. This will enable you to save more money, which may be saved over a longer duration to meet the down payment towards your home.
You may seek help from your relatives or friends or procure a soft loan from your employer to fund the down payment. Consider taking up another job to earn more income.
While arranging for the down payment is important, it is recommended you check the title of the property before making your decision. Ensuring there are no legal issues before your home loan application is important to avoid inconvenience and delays.
Several individuals avail of personal finance to meet emergency fund requirements. Such loans are available without any collateral, which makes these popular. Furthermore, the borrowed amount may be used for any legal purpose, thereby giving you flexibility.
It is most likely that you may avail of this loan to repay it before the end of the tenure. Compared to other loans like home or auto, the interest rates on personal finance are higher.
There are several benefits of prepaying part of the entire loan amount before its tenure. Generally, you may choose a longer tenure to reduce the equated monthly installment (EMI). However, the interest paid over a longer duration is higher, and, therefore, repaying earlier is beneficial.
Lower the EMI
If you have funds available, it is recommended you use them to repay the outstanding personal loan. This will enable you to lower the EMI and also ensure the amount is repaid in a shorter period of time. When you repay the loan faster, you can save a significant amount for a longer duration.
2. Pre-closure penalty
Financial institutions may levy a certain penalty if you repay the personal loan before the end of its duration. It is recommended you check the penalty and make an informed decision. In most instances, you will still be able to save money when you prepay, even after paying the pre-closure penalty. This is because the personal loan interest rates are higher than secured credit facilities, such as home or auto loans.
3. Improve credit score
Your credit score is directly related to the number of your outstanding debt liabilities. When you prepay the loan, it is immediately reflected in your credit score. Repaying the money before the end of the loan tenure positively affects your credit score. A higher score will ensure lenders perceive you as low-risk in the future when you apply for another loan.
You may either prepay the entire amount or some part of the outstanding principal. The following will help you understand the advantages of repaying either part or full loan amount before its tenure.
4. Full prepayment
When you prepay the entire loan amount before the end of the duration, you can save a significant amount towards the interest payout. Furthermore, the interest savings are higher when you prepay during the initial years of the loan duration. Most lenders have a minimum lock-in period during which you are not allowed to prepay the loan amount. You should invest in high-return instruments if you have extra money during the lock-in period. The accumulated amount may then be used to repay the loan amount after the lock-in period.
5.Partial prepayment
You may receive an annual bonus, or some of your other investments may mature during the loan duration. This amount may not be equal to the entire outstanding loan amount. However, it is beneficial to use the same to repay the loan. Partial prepayment reduces the outstanding principal, which decreases your EMI. Therefore, using the funds to repay the loan will help you save a huge amount in the long run.
The old saying “borrow less and repay early” is still applicable. Moreover, when you avail of a personal loan online, you can enjoy certain special offers. However, it is still debt, and repaying it at the earliest is advisable to ensure your outflows are the least.
