What's new

Indian Economy-News & Updates

How is the plan?

  • Good

    Votes: 161 61.7%
  • Average

    Votes: 53 20.3%
  • Poor

    Votes: 47 18.0%

  • Total voters
    261
Rural India Gets Chance at Piece of Jobs Boom

1136fa5fe1531ad6bfbbf9fb7548f932.jpg


260d6deac30af45558e251aa2d6c34bb.jpg


BAGEPALLI, India — Under harsh fluorescent lights, dozens of heads bend over keyboards, the clattering unison of earnest typing filling the room. Monitors flicker with insurance forms, time sheets and customer service e-mail messages, tasks from far away, sent to this corner of India to be processed on the cheap.

This scene unfolds in cities across India, especially in the high-tech hubs of Bangalore and Gurgaon, places synonymous with the information technology revolution that has transformed India’s economy and pushed the country toward double-digit economic growth.

But these workers are young people from villages clustered around this small town deep in rural Karnataka State in India’s southwest. They are part of an experiment by a handful of entrepreneurs to bring the jobs outsourcing has created to distant corners of India that have been largely cut off from its extraordinary economic rise.

Only about a million workers are employed in the buzzing call centers and pristine tech company campuses that have come to symbolize India’s boom — a drop in the bucket, given the country’s more than 1 billion people.

Almost all of those jobs are in cities. But 70 percent of Indians live in rural areas. India largely skipped — or never arrived at — the industrial phase of development that might have pulled the rural masses to cities. Over the decades a Gandhian fondness for — some say idealization of — rural life has also kept people in villages, where the bonds of caste and custom remain strong.

India has struggled unsuccessfully with the question of how to lift this vast underclass out of poverty. Some economists argue that India still needs rapid urbanization if it is ever to become a major economic power and provide jobs to its vast legions of unemployed. But the founders of Rural Shores, a company that is setting up outsourcing offices in rural areas, say it makes more sense to take the jobs where the people are.

“We thought, ‘Why not take the jobs to the village?’ ” said G. Srinivasan, the company’s director. “There is a lot of talent there, and we can train them to do the job.”

Rural India was once seen as a dead weight on the Indian economy, a bastion of backwardness embodied by the frequent suicides of farmers eking out livings from arid fields, dependent upon fickle monsoons. But Indian and foreign companies have come to see India’s backwaters differently, as an untapped market for relatively inexpensive goods like low-tech cellphones, kitchen gadgets and cheap motorcycles.

Now some businesses have begun looking to rural India for an untapped pool of eager and motivated office workers. Rural Shores has hired about 100 young people, most of them high school graduates who have completed some college, all of them from rural areas around this small town. The company has three centers now, but it aims to open 500 centers across India in the next five years.

Most of the center’s employees are the first members of their families to have office jobs. They speak halting English at best, but have enough skill with the language to do basic data entry, read forms and even write simple e-mail messages.

With much lower rent and wages than in similar centers in cities, the company says it can do the same jobs as many outsourcing companies for half the price. A Bangalore office worker with skills similar to those of workers here commands about 7,000 rupees a month, or $150, Mr. Srinivasan said. In small towns and villages, a minimum-wage salary of about $60 a month is considered excellent.

Here in Bagepalli, the Rural Shores office hums through two shifts a day. One set of workers answers customer service e-mail messages for an Indian loyalty card company. Another processes claims for an insurance company. In one room, workers capture data from scanned timecards filled out by truck drivers in the United States. They record nights spent in Abilene, Tex., deliveries in Kansas City and breakdowns in Salt Lake City, all of which the workers decipher and enter into a database.

Amid the clatter of slender fingers hammering at keyboards, R. Saicharan, 24, a business school graduate from Chennai, explained the frenzy of typing. “Every morning we get a download of images of time sheets,” he said. “By 7 p.m. we need to process 13,000 of them.”

The time sheets belong to American truck drivers, and Rural Shores has been hired as a subcontractor for a larger outsourcing company in Bangalore to do the data entry portion of the work. Deciphering scrawls on the scanned documents, the 20 workers on Mr. Saicharan’s team race to earn bonuses for being the fastest typist.

The current champion is S. Karthik, 20, a high school graduate who worked briefly in Bangalore but found city life too hectic and expensive. “Here I can live with my family,” Mr. Karthik said.

Like many here, he is working on a college degree by correspondence course. Most of his friends had either moved to Bangalore or were unemployed. “There are no jobs in Bagepalli for a young man,” he said.

Most of the workers are the children of farmers and often the first generation to finish high school. For many, a job at an outsourcing center is an unimaginable opportunity.

K. Aruna, 19, lives with her widowed mother and younger sister in a two-room house on a narrow, muddy lane in a small village on the outskirts of Bagepalli. Until Ms. Aruna got a job at the Rural Shores center, the family subsisted on what their two-acre farm and two cows could produce. Sometimes they struggled to earn $20 a month among the three of them. They could scarcely afford vegetables and fruit to supplement dull meals of lentils and flatbread.

With her new job Ms. Aruna now makes more than $70 a month. The family has bought some furniture — a wardrobe — and new saris and jewelry. When she came home with her office identification badge hung around her neck, the whole village gawked.

“I am the only person in this village to have an office job,” Ms. Aruna said, fingering the teardrop-shaped gold earrings she had bought herself. “I never thought it would be possible.”
 
Betting big on Indian equities, foreign institutional investors (FIIs) have put over Rs. 71,900 crore so far this year in the country’s bourses, the highest ever investment made in rupee terms in a single year.

So far in 2009, overseas investors have invested a net of Rs. 71,979 crore (about $14.99 billion ) in the local stock markets, the data available with market regulator Securities and Exchange Board of India (SEBI) reveals.

Till now, the year 2007 attracted record investment from foreign fund houses. FIIs inflows in stock markets in 2007 stood at Rs. 71,486 crore.

“The trend is not surprising that Indian equity markets attracted record investment this time. A number of factors including weakening of the dollar and a higher rate of return from the emerging markets have attracted the investment from FIIs,” Unicon Financial CEO Gajendra Nagpal said.

According to market-men, inflows from foreign houses in the Indian stock markets will continue in the coming days.

“With the government’s talk on disinvestment of stake in state-run companies and the announcement of big infrastructure programmes, we see FIIs would stay long in the Indian market,” a leading market analyst said.

Interestingly, the stock market benchmak Sensex has risen over 76 per cent so far this year, emerging as one of the best performers among its peers.
The Hindu : Business / Economy : FII inflow crosses Rs. 71,900 crores; a new record
 
NEW DELHI -- France's Compagnie Generale des Etablissements Michelin Monday said it will invest 40 billion rupees ($868 million) to set up a new factory in India's southern Chennai city.

The company expects the factory, which will make radial tires for trucks and buses in India and employ 1,500 people, to start production in 2012.

Monday, Michelin signed a pact with the state government of Tamil Nadu to set up the 290-acre plant 50 kilometers (31 miles) north of Chennai, the capital of the province.

"We believe that India holds tremendous potential for the Michelin group in terms of establishing a world class manufacturing facility," said Prashant Prabhu, president, Michelin Africa-India-Middle East.

The rise in demand for automobiles has prompted several Indian and foreign tire makers to invest in the country. These companies are betting not only on the increasing demand in the local market but also want to use the low-cost manufacturing base in India for exporting tires.

"An increase in the focus of the government to build better roads to support the challenges of mobility of people and goods in India will result in an ever-increasing demand for radial truck and bus tires," said Philippe Neyrat, commercial director at Michelin's India unit.

Michelin, the world's biggest tire maker by sales, has 68 production sites in 19 countries.

Michelin to Build Factory in India - WSJ.com
 
Mumbai, Nov 18 (PTI) Overseas investors today made a net purchase of Rs 412.13 crore in the equities (provisional data), however their investments failed to hold the market barometer Sensex above the psychological 17,000 points level.

Foreign institutional investors were the gross buyers of shares worth Rs 2,597.45 crore today, while they sold equities worth Rs 2,185.32 crore, resulting in a net buy of Rs 412.13 crore, provisional data from the Bombay Stock Exchange show.

However, domestic institutional investors booked profit and were the net sellers worth Rs 256.73 crore.

On Tuesday, FIIs bought shares worth Rs 593.70 crore, as per the latest data with market regulator SEBI.

In today's trade, proprietors followed FIIs and were net buyers of stocks worth Rs 55.87 crore.

Brokers and non-resident Indians were in selling mood and together offloaded shares worth Rs 102.88 crore.

The BSE Sensex settled the day at 16,998.78, falling by 51.87 points or 0.
 
India's riche-rich club topples their Chinese counterparts
NEW YORK: India lags behind China in terms of economic growth rate, but has beaten the neighbourhood country, when it comes to the wealth
accumulated by its richie-rich club.

India's 100 richest people command a total fortune of $ 276 billion, which is more than $ 100 billion than the total networth of their Chinese counterparts, despite the fact that China is home to more number of billionaires.

The nation's richest top their Chinese counterparts when it comes to the size of their fortunes. The top 10 richest Indians have a fortune of $ 155 billion, almost four times that of China's top 10, business magazine Forbes said.

According to Forbes, India is now home to as many as 52 billionaires, nearly double from 27 last November and just shy of a record of 54 in 2007 at the peak of stock market boom.

"The combined fortune of India's 100 richest is a staggering $ 276 billion, well ahead of the equivalent sum for China's top 100," Forbes said. The total networth of 100 richest people in China stood at $ 170 billion.

It added that "although China has more billionaires - 79 vs India's 52 - India's wealthiest are worth over $ 100 billion more than the $ 170 billion total net worth of their Chinese counterparts."

Meanwhile, India's wealthiest person, Mukesh Ambani, boasts of a net worth which is more than five times the wealth of China's richest citizen.

Mukesh Ambani, with a fortune of $ 32 billion, has a wealth more than five times of the $ 5.8 billion net worth of China's richest citizen BYD's Wang Chuanfu, at the time Forbes published its China 400 rankings earlier this month.

"Wang's fortune has since dropped along with BYD's shares," Forbes added.

India saw a significant rise in the number of super rich people largely driven by a recovery in the stock markets and buoyant economic conditions despite global economic slump.

"Happier days are here again for India's super rich, thanks to a rebounding stock market, up two-thirds in the past year, and a still buoyant economy that's growing at least six per cent a year," Forbes said.

Among other factors, a recovering real estate market was one of the biggest sources of wealth, producing 14 rich-listers, over half of them billionaires, while 13 tycoons made their money in India's pharmaceutical industry.

Meanwhile, India's export-driven software sector, produced some of the country's bigger fortunes, including that of tech tycoon Azim Premji who was ranked fourth on the Forbes rich list with $ 14.9 billion, and HCL Group's Shiv Nadar at No 15, Infosys Technologies alone produced five of the top 100 tycoons -- three of whom are billionaires -- more than any other company.

Number of Indian billionaires almost doubles in a year: Forbes

The bull run!
 
Its not about being the richest, all that money is not going to help when you die. Does this guy even contribute to the community like Bill Gates does??
 
Its not about being the richest, all that money is not going to help when you die. Does this guy even contribute to the community like Bill Gates does??

Well, well, well.

Indians are poor - Pakistanis have problem

Indians are rich - Pakistanis have problem

Do you really understand economy? You can't be a billionaire without helping economy. These things go hand-in-hand. And yes, donating fortunes does not directly help economy, it helps needy people.

Please try to get your basics fixed. :agree:
 
Well, well, well.

Indians are poor - Pakistanis have problem

Indians are rich - Pakistanis have problem

Do you really understand economy? You can't be a billionaire without helping economy. These things go hand-in-hand. And yes, donating fortunes does not directly help economy, it helps needy people.

Please try to get your basics fixed. :agree:

Don't start a flame war.

read my post again i said, community not the economy, like funding NGO's.
 
Its not about being the richest, all that money is not going to help when you die. Does this guy even contribute to the community like Bill Gates does??

I agree with you. Number of billionaires does not reflect the economic development of a country. Ratan Tata may not be India's richest. But the respect he and his TATA group command is much more than Mukesh/Anil Ambani and his Reliance group. This is because TATA group contribute a lot to social cause than Reliance.
 
Don't start a flame war.

read my post again i said, community not the economy, like funding NGO's.

No buddy, you still don't get me. Helping economy is better than helping community.

Yes, I know what I'm talking about. MS is not praised for fair business. Always trying to create monopoly. This is not only against the business morals, but also against the law.

Speaking about Indian businessmen, they do contribute to the community, too. Many NGOs, schools, hospitals, education institutes, research centers, individuals students/researchers get benefit from them.
 
No buddy, you still don't get me. Helping economy is better than helping community.

Yes, I know what I'm talking about. MS is not praised for fair business. Always trying to create monopoly. This is not only against the business morals, but also against the law.

Speaking about Indian businessmen, they do contribute to the community, too. Many NGOs, schools, hospitals, education institutes, research centers, individuals students/researchers get benefit from them.

Your still not getting my point, i agree he is helping the economy, creating jobs, and will these jobs help the unfortunate ones that need special assistance through NGO's or other such organizations. I agree with you most rich people contribute to the community but i have not heard f it being done by Mukesh Ambani.
 
Your still not getting my point, i agree he is helping the economy, creating jobs, and will these jobs help the unfortunate ones that need special assistance through NGO's or other such organizations. I agree with you most rich people contribute to the community but i have not heard f it being done by Mukesh Ambani.

You are right. Ambani brothers are never heard of doing these things. Personally, I feel that they should help community using their wealth. But again, it's their own money. We can't force them to. It's entirely up to him what he does with the money. It's fine with me until he breaches any laws or business morals.

Certainly, there are people with bigger hearts in India. And they do contribute the community, the way you suggest.
 
this truly indicates the big gap between poor and rich. this social disparity and inequality my finally topple indian social order. how are you guys the elites in your government and your upper classes handling this??? can the inequality solving rate be faster than the gap widening rate??
 

Back
Top Bottom