Corporate India sees improvement in 4th quarter job data
Corporate India has hinted at an increase in its hiring patterns during the fourth quarter of the current financial year, according to the Confederation of Indian Industries.
This is in contrast to the preceeding quarter’s growth in employment opportunities, which remained stagnant.
“However, expectations have improved as 23.5 per cent foresee an increase in their employment levels in the fourth quarter as compared to 11.7 per cent in the third quarter,” said CII in its Business Outlook Survey.
As per the report, in the third quarter, while some companies kept their staff levels unchanged, others witnessed a fall in their employment levels. “In an indication of improvement in economic growth in 2013-14, majority of the respondents expect GDP growth next year to conform to the official estimates of 6.1-6.7 per cent as forecast in the Economic Survey,” said CII.
Notwithstanding the falling GDP growth to 4.5 per cent in the third quarter of the current fiscal as against 6 per cent a year ago, the trade body said half of the respondents expect the Indian economy to expand by 5-5.5 per cent for 2012-13.
Meanwhile, companies anticipate WPI inflation to lie in a range of 7-8 per cent the current fiscal. For the next financial year, however, some of the respondents hope inflation to moderate to 6-7 per cent. “Even as the government remains committed to adhering to target of fiscal consolidation, majority of the respondents expect the fiscal deficit to exceed the budgeted estimate of 4.8 per cent for the next fiscal,” it said
The CII Business Confidence Index, which had slipped below the psychological 50 level mark in the third-quarter of the current fiscal, rose to 51.3 in the final quarter. “Though the index has strengthened in the final quarter of the current fiscal, it is too early to assume that the slowdown has bottomed out and the green shoots of recovery have begun to emerge.”
Corporates also said high levels of corruption, persisting inflation, threat to continuation of reform process, escalated interest rates and political uncertainty as the major concerns.
“For matching up to the government growth estimates for the next fiscal, it is critical that we remain focused on introducing the critical reform measures. The Union Budget 2013-14 has indeed covered some distance in this direction, but more measures are warranted,” said Chandrajit Banerjee, Director General, CII.