COVID SLOWDOWN
IT hiring: After prolonged slowdown, data signals green shoots
After months of subdued hiring numbers, IT companies are in for good news. Overall, tech hiring has seen a slight improvement in Q1, as per staffing firms, in line with expectations of some green shoots in demand. IT firms seem to be favouring experienced hires due to immediate project needs.
Bengal government withdraws 2% stamp duty, 10% circle rate relief for real estate sector
The West Bengal government has decided to end temporary relief measures for the real estate sector, including a 2 per cent stamp duty reduction and 10 per cent circle rate slash, effective July 1. Initially introduced in October 2021 to combat COVID-19 economic impacts, the benefits were extended multiple times. Sushil Mohta, of CREDAI West Bengal, expressed gratitude for the measures but urged a reconsideration, emphasizing the sector's significant contributions to the state's economy.
Not AI, IT hiring not picking up because of global slowdown in IT spend: Ramani Dathi, Teamlease Services
Ramani Dathi says there is no major uptick as far as demand for IT pros is concerned. There are a few set of clients, especially the GCCs and to some extent, who are able to maintain the current run rate of revenues and headcounts for Teamlease, but to show a massive growth or a double-digit growth, the IT services hiring has to be back on track.
It was ‘closing’ time for many retailers in FY24; V-Mart, W, Aurelia among cos that downed more shutters
Retail chains like Pantaloons, Spencer's Retail, and Nature's Basket have closed down more stores in 2023-24 than they opened new ones, leading to a drop in their total store count. V-Mart Retail, W, Aurelia, and Titan Eye+ had higher store closures than openings in the January to March quarter. Pantaloons store count dropped from 431 in FY23 to 417 in FY24, with 33 stores closed to improve network quality.
Covid scare is gone, but at-home consumption of alcohol sticks
According to latest data from global alcohol market analysts IWSR, 79.2% of alcobev volume sales in India last calendar year were ‘off-premise’, or outside bars and restaurants. While this share has come down from 82.4% in 2022, it is still higher than 72.5% during the pre-pandemic year of 2019.
Election outcomes won't disrupt India's economic stability: Saurabh Mukherjea
There will probably be governance continuity as well, but almost certainly there will be policy continuity and hence, my point of view to the foreign investors is, beyond a point, you should not overemphasise the elections.
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Liquor demand still dull, could pick up soon: United Spirits
"On the demand front, the growth has moderated from two years ago. And at the lower end, we continue to see some pressure. Moderation was there during the wedding season, and so growth is continuing to be slower," the company's managing director and chief executive Hina Nagarajan told analysts during an earnings call.
AstraZeneca to withdraw Covid vaccine globally as demand declines; faces legal challenges over side effects
Astrazeneca Vaccine: AstraZeneca has announced the worldwide withdrawal of its COVID-19 vaccine, Vaxzevria, citing a surplus of updated vaccines amid the pandemic. The company has also faced legal challenges over reported side effects, including blood clots. Families of affected individuals are pursuing legal action, seeking compensation and holding multiple parties accountable for their losses.
China trade beats expectations in April
Chinese exports returned to growth last month while imports smashed expectations, data showed Thursday, providing a much-needed boost to the country's leadership as it tries to steer the economy out of a long-running slump. Meanwhile, imports surged 8.4 percent, far better than the 4.7 percent estimated in the Bloomberg survey, providing hopes that demand in the world's number two economy could be improving.
Indian students fail to land internships in US amid hire-local push
Indian students in the US, including those from Ivy League universities, face internship challenges amid job slowdown. Competition intensifies with scarcity of entry-level job opportunities, impacting job market competitiveness.
IT companies Cognizant, Capgemini hired 1.5 lakh less hands in 2023
Global hiring decline in 2023 impacted major IT companies like Cognizant and Capgemini. Indian IT firms also faced headcount reductions. Everest Group attributed layoffs to Covid over-hiring, while Gen AI influenced hiring decisions.
Top IT companies cut over 72,000 jobs in FY24
The top six information technology services companies in India reported a reduction in their total headcount in the last fiscal year, with only HCLTech adding employees. Factors contributing to this reduction include the economic slowdown, automation, restructuring, and decreased discretionary spending. The drop in headcount reflects the aftermath of excessive hiring during the Covid boom and ongoing industry contraction in demand. However, experts believe that this trend may have bottomed out, and companies could resume hiring, given the strong deal wins announced by most of them, which could push a gradual pickup in growth.
Chinese spending jumps over long holiday weekend, tops pre-COVID level
During China's Tomb Sweeping holiday, domestic travelers spent $7.5 billion, indicating rising consumer confidence amidst economic challenges. Per capita spending exceeded pre-pandemic levels, suggesting a potential turning point for consumption recovery. Analysts see a growing willingness to spend, despite ongoing concerns like property market downturn and unemployment.
Gucci’s China shock reverberates across the luxury landscape
Fears of a slowdown in luxury spending among Chinese consumers have been growing for some time, and recent events have underscored this concern. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China.
No slowdown in web commerce, a product of Covid era, even after Covid is long gone
A whole array of products, from the humble cookie and other daily munchies to pocket-pinching discretionary items such as television sets and refrigerators, are selling on ecommerce sites with frequencies similar to or higher than those through the lockdown days, showed the latest data by market researchers NielsenIQ and GfK India.
Industrial growth slows to 3.8% in January; manufacturing decelerates
Industrial growth eased to 3.8% in January due to a manufacturing slowdown and slower public capex spending. Mining expanded 5.9% and electricity production increased 5.6%. Manufacturing growth eased to 3.2% in December. The factory output in January was 14.0% higher than the pre-COVID level.
Wedding-related consumption remains muted amid fewer dates, slowdown
As per industry estimates, sales of categories like ethnic wear and wedding wear, gold jewellery and electronic household appliances have declined by 10-20% in FY24 till February as compared to the same period in FY23. However, luxury and premium products bucked the trend of sales decline mirroring the overall trend in consumption, chief executives said.
China retains 5 per cent growth target for 2024 as economy struggles to shake off slowdown
China expects to create over 12 million jobs in urban areas and keep the surveyed urban unemployment rate at around 5.5 per cent this year, Chinese Premier Li Qiang said in his work report presented to the opening session of the country's rubber-stamp parliament, the National People's Congress (NPC).
Are asset quality bombs lurking for NBFCs at the end of the cycle? Karan Gupta answers
Karan Gupta of India Ratings & Research expects a growth slowdown in the unsecured lending sector in FY25, particularly on the personal loan side, due to funding constraints. The MFI sector's rating outlook remains stable, reflecting the impact of deregulation on yields and risk-based pricing. Gupta says "the tightness for deposit accruals is more structural in nature and that is something that will continue."
Fat tech pay cheques shed up to 40% as slowdown bites
Salary offers for IT professionals have dropped 30-40% due to global macroeconomic headwinds and IT sector slowdown. Big tech companies rationalized their workforce, leading to lower pay packets. Early-stage startups are hiring CXOs and senior tech talent at realistic salaries, including variables in the compensation. Michael Page India is helping startups, including an edtech firm, with tech hiring.
Allcargo Logistics plans to cut costs by $30 million in FY24 amid global slowdown
Allcargo Logistics is planning to cut costs by $30 million by the end of 2023-24 due to the ongoing slowdown in the global logistics sector. The company also aims to raise up to Rs 300 crore in equity funds for Gati, its express logistics business. Company's chairman Shetty said the cost cutting would include a rationalisation of the workforce and a freeze on hiring.
India's Q2 GDP growth slows to 7.6%, yet trumps analyst expectations
A median poll of 10 economists by the ET had showed the economy clocking growth figures of 6.7%, 20 basis points more than that of the RBI estimate for the quarter. A Reuters poll of economists estimated India's GDP growth at 6.8% in the July-September period, easing from the previous quarter's 7.8%.
Climate action: The Dubai conference will be taking the same, inadequate baby steps that previous editions have
The Covid pandemic shifted attention away from climate change for a while. But global economic slowdown also led to a slowdown in global emissions increases. But with global recovery underway, emissions have resumed with equal fervour. IPCC's latest grim assessment of progress on climate action is that world temperatures have already risen by 1.1° C, and could breach 1.5° C increase before 2030, unless global emissions fall by 43%.
Rupee depreciation may push up garment, handicraft exports
If the rupee depreciates about 10% and the import content in the product being exported is 20%, the net gain to exports would be 8%, said industry experts. "One can also get the benefit while negotiating contracts. If an exporter hasn't hedged, then they would get windfall gains during the period of depreciation, but most of the time, inflation nullifies the benefit given by deprecation," said Ajay Sahai, director general, Federation of Indian Export Organisations.
Festive high for online lending; slowdown for IT majors
The ongoing festive season is proving to be a shot in the arm for the digital lending industry. This and more in today's ETtech Morning Dispatch.
Slowdown & Covid hit labour market but pay gap narrowing: Azim Premji University report
According to the ‘State of Working India 2023’ report, gender-based earnings disparities have narrowed in India since 2017 with salaried women workers now earning 76% of what their male counterparts earn, up from 70% in 2004.
Growth slowdown, Covid has impacted labour market since 2018: Azim Premji University Report
The Azim Premji University's report, State of Working India 2023, highlights how the growth slowdown and the Covid-19 pandemic have impacted the labor market. The workforce has shifted towards self-employment, with women being more affected than men. However, the report also notes that gender-based earnings disparities in India have reduced since 2017, with salaried women now earning 76% of their male counterparts.
India has come out strong from challenges posed by COVID, needs to maintain momentum: World Bank President
India has come out strong from the challenges posed by the Covid pandemic but the momentum needs to be maintained, World Bank President Ajay Banga said on Wednesday. Talking to reporters at a skill centre in Dwarka, the first-ever Indian-American to head the top global financial institution said India is doing a lot of things which are helping it to stay ahead during times of a global slowdown.
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