With a population of more than 1.3 billion, stable parliamentary system, technological advancement, and quality resources at a competitive price, India has emerged as a preferred investment destination for manufacturers and service providers worldwide. The Indian government has created a campaign, the #MakeinIndia, to provide a conducive environment for investors. Despite this, overall development is undermined by corruption, underdeveloped infrastructure, and poor management of public finances. The government has also initiated policy changes to make it more flexible to set up new operations in India.
Education is one of the most powerful ways to reduce poverty and inequality. Ensuring access to quality education for all is central to the economic and social development of India. Currently, 95 percent of children in India attend primary school, but only 40 percent attend secondary school. This is a key challenge to the schooling system in the country, as statistics say that only 1 in 10 students have access to higher education programs.
THE EASE OF DOING BUSINESS IN INDIA
World Bank’s Ease of Doing Business index rated India 130th out of 190 other countries in 2017. Biggest improvements were made in getting electricity by streamlining the process of getting a new commercial electricity connection, which impacts the capital, Delhi. The rank for getting electricity went up 25 placements, and India is now ranked 26th.
POLITICS AND THE ECONOMY
According to The World Bank, the Indian economy will likely grow 7 percent in 2016-17, followed by further acceleration in 2017-18 to 7.6 percent and in 2017-18 to 7.8 percent. The GDP was 2,264 billion US dollars in 2016 and growth rate was 7.1 percent. The economy is still recovering from The Indian Prime Minister Narendra Modi’s unexpected cash ban in late 2016. The ban was made to fight corruption and black money, but it ended up hurting a number of small businesses in agriculture and transportation. Unemployment was estimated to be around 3.4 percent in 2016.
WHAT TO KEEP AN EYE ON
Consumer economy development. India is predicted to be the third largest consumer economy as its consumption may triple to 4 trillion US dollars by 2025. Some forecasts say India could even surpass the United States by 2040 in terms of purchasing power parity.
We had a chance to interview Subramanian Hariharan (Owner, Headhunter India). We asked Mr. Hariharan few questions about the headhunting and recruiting market in India:
How do you see the situation at the moment?
There is a stagnation in Business since the time Demonitization and subsequent GST was implemented. Anyhow it is improved considering the scenario during last few months. Things are not moving as expected.
Are there some industries in India which are growing faster than others?
We could see growth in e-Commerce , Power and Energy Sector. I was approached by couple of huge Chinese Corporation in Transportation (Rail / Metro) and Oil & Gas Business for their expansion in India especially targeting Public sector Projects .
What kind of roles and talent are companies looking for?
Mostly companies are looking for roles focused on Marketing & Sales like Business Managers ,Sales Directors , Business Head or Regional Business Heads. They are keen on revenue generation.
Is there some kind of talent shortage in India?
Lots good talented candidates (Indians) have moved from Middle East , Europe and USA due to slow down in Business all across the Globe .There is no talent shortage as such but getting a relevant candidate for any position is a task. Now a days companies are more specific in terms of hiring .
Are companies looking mostly for Indian people, or are they also interested in people from abroad?
Companies in India are mostly interested only with people of Indian origin. Very few of the MNC’s bring expats for critical positions directly from the HQ.
How do you see the development of recruiting and headhunting markets in India over the next couple of years?
It’s the transition period now and there is feel of stagnation everywhere. We hope that the situation will improve over the period of time and subsequently there will be good scope for recruiting & Headhunting markets in India over the next couple of years.