Connect with us

Industry

Demonetisation hits December services growth

Published

on

currency ban

Mumbai, January 4: The government’s demonetisation move provoked a downturn in the Indian service sector growth in December, with business activity contracting for the second consecutive month, revealed key macro economic data on Wednesday.

Indian service providers continued to be impacted by the November 8 move with the Nikkei Services Purchasing Managers’ Index (PMI) stuck almost unchanged at 46.8 in December as compared to the 46.7 in November.

An index reading of above 50 indicates an overall increase, while below 50 an overall decrease.

The PMI series of data are published by the leading global diversified provider of financial information services “IHS Markit”.

“Business activity in the service sector fell for the second consecutive month in December, reflecting a steeper reduction in incoming new work. Backlogs continued to rise, while employment decreased fractionally,” the survey said.

“Panel members widely blamed the deterioration in economic conditions on the rupee demonetisation, with concerns towards the speed of the recovery weighing heavily on sentiment,” it said.

The Indian service economy ended 2016 on a grim note, with the average PMI activity index reading for the October-December quarter the lowest since early 2014,” said Pollyanna De Lima, economist at IHS Markit and author of the report.

According to the report, services activity fell in response to a solid and accelerated drop in new business during December.

The rate of contraction in new work quickened to the fastest since September 2013, with evidence suggesting the decline reflected shortages of money in the country.

Order books at manufacturers decreased in December for the first time in 2016, it said.

With factory production also falling, activity across the private sector economy as a whole dipped to the greatest extent in over three years, De Lima said.

“This was highlighted by the seasonally adjusted Nikkei India Composite PMI Output Index (manufacturing and services) recording 47.6 in December, from 49.1 in November,” she said.

“Of concern, business confidence among service providers plunged to one of the lowest in the series’ 11-year history, suggesting that an imminent rebound from the rupee demonetisation downturn is unlikely,” she said.

Business confidence is being hampered by worries about the speed of the recovery following the rupee demonetisation, the Nikkei survey found.

IANS

India

Indian Railways suffers as private players fail to meet wagon delivery targets

Wagon manufacturers are the mainstay of the railways as 90 per cent of its requirement is met by the private sector. Till October 1, Indian Railways has received only 2,717 of the 12,311 wagons that had been ordered from 10 major players in April.

Published

on

Indian_Railways

New Delhi, Oct 21 : A working capital crunch, coupled with lack of critical components, has slowed down the delivery schedule of railway wagons, affecting their availability with the transporter, a senior official said.

“Wagon manufacturers are the mainstay of the railways as 90 per cent of its requirement is met by the private sector. Till October 1, Indian Railways has received only 2,717 of the 12,311 wagons that had been ordered from 10 major players in April,” the Railways official told IANS.

Thus, the manufacturers are expected to produce 9,594 wagons, each of which costs Rs 25 lakhs, in the next five months, by March 2019, which seems to be a tall order, industry stakeholders said.

Expressing serious concern over the slow pace of delivery, the Railways has asked wagon manufacturers to improve the supply or face a penalty of two per cent of the value of the order as laid down in the contract, the official said.

According to industry sources, there are issues like lack of working capital and non-availability of critical components like bogeys, couplers, dropgear and airbrake systems from Research Designs & Standards Organisation (RDSO)-approved vendors.

While the price of steel has gone up around 20 per cent to 25 per cent in the recent past, there are also Goods and Services Tax (GST) issues.

Five per cent GST is applicable on wagons, while the GST on raw materials required for wagon productions is 18 per cent.

There are plans to approach the Finance Ministry to resolve the GST issue, industry sources said.

Meanwhile, the Railways has decided to opt for the reverse auction method to decide on its future tender for procurement of 21,758 wagons at an estimated cost of Rs 5,600 crore — the largest such order for the national transporter.

The order includes nine types of wagons, including covered, flat, open and brake vans to be supplied by the successful bidders in the next two years.

(Arun Kumar Das can be contacted at [email protected] )

Continue Reading

Blog

A library run by industrial workers means world of change for children

Messages from martyrs like Bhagat Singh, Safdar Hashmi and others adorn the walls of the library. “Behtar zindagi ka raasta behtar kitaabon se hokar jaata hai” (The road to a better life passes through good books) — a board outside the room says.

Published

on

A movie screening in the library

Ludhiana (Punjab), Oct 21 : At first look, it is just another small room with one wall almost crumbling. But this 25-square yard space means the world for children of factory workers and labourers in Punjab’s industrial hub Ludhiana.

Without any grant or support from corporates or the government, this education endeavour by workers and daily-wage earners living in the Rajiv Gandhi colony area of Jamalpur in Ludhiana’s Focal Point industrial area, is making a sea of difference to the lives of children who come here every single day with their working parents.

The Shaheed Bhagat Singh Pustakalaya has no fancy address, no high-profile CSR support and no big-time NGO dedicating its resources. Yet, it is on a mission — to create a small education revolution by touching the lives of the many children coming here to study.

Messages from martyrs like Bhagat Singh, Safdar Hashmi and others adorn the walls of the library. “Behtar zindagi ka raasta behtar kitaabon se hokar jaata hai” (The road to a better life passes through good books) — a board outside the room says.

“We established this library in April this year. It is entirely an effort of workers and labourers of the industrial units in Ludhiana, who live in the vicinity of the LIG (low income group) flats and Rajiv Gandhi colony,” Lakhwinder Singh, the man behind the mission to guide the workers’ children to a better future, told IANS here.

The library has been set up under the aegis of the Karkhana Mazdoor Union by collecting funds from the workers. Contributions ranged from Rs 100 to Rs 5,000. Most workers themselves earn less than Rs 10,000 per month.

Lakhwinder, 33, who himself has done an advanced diploma in dye and mould making from a central institute in Chandigarh and has been living in Ludhiana since 2006, is the main force behind the library project. He is married but has no children yet.

“We began everything on a small scale. We have got no funding from the government or any corporate. The children coming here are not being forced to do so. They come here on their own and are liking the concept of teaching here,” he pointed out.

Ludhiana, one of the largest industrial hubs in Asia, with a population of 3.5 million people, is known for its bicycle industry, textile units, auto-parts manufacturing and scores of other businesses. A majority of the workforce here is that of migrant workers from other states, especially Uttar Pradesh and Bihar, who have been living here for decades.

The library gets active from 4 pm to 7 pm every day when the children come here to get an education. Krishan Kumar, a teaching volunteer, uses hands-on concepts, including showing films, to create awareness and impart education. The library has over 500 books in Hindi and Punjabi stacked on iron shelves.

“We make a lot of friends at the library. It is like a family,” Arjun, 12, a student of class VI in a government school, said.

Lakhwinder pointed out that the parents of a majority of the children who come to the library have themselves not studied beyond Class VIII or are illiterate, but do not want their children to suffer the same fate.

“The room can accommodate over 30 children. At times, we have to put a stop on the numbers as the room cannot accommodate more children,” Lakhwinder pointed out.

For an annual charge of only Rs 50, the children are provided a library card and are allowed to take two books home at one time. The fee is charged so as to make the children responsible for the books they take.

“The children like to come here. They are allowed to express themselves freely even when they are being imparted education,” he said.

The children coming here are enthusiastic about what they are doing here.

“It’s quite nice and refreshing to come here. Learning here is a lot of fun,” Khushi, 13, a student of Class VII, said.

In its own modest way, this library is making a definitive change in the lives of the young ones.

(The weekly feature series is part of a positive-journalism project of IANS and the Frank Islam Foundation. Jaideep Sarin can be contacted at [email protected] )

Continue Reading

Business

LinkedIn partners with Oracle to help HR teams attract right talent

Published

on

oracle LinkedIn

New Delhi, Oct 17: Cloud major Oracle on Wednesday said it entered into a partnership with professional networking platform LinkedIn to help HR teams attract, engage and retain employees.

A series of new integrations between Oracle’s Human Capital Management Cloud (Oracle HCM Cloud) and Taleo Enterprise Edition, and LinkedIn, will help HR teams to grow their talent pool and increase career development opportunities, Oracle said.

“The world of work is rapidly changing, and this is creating new opportunities and challenges for talent leaders,” Scott Roberts, Vice President of Business Development, LinkedIn, said in a statement.

“We are excited to be working with Oracle to create better solutions to make hiring and developing talent as seamless and effective as possible,” Roberts added.

The new integrations enable HR teams to take a holistic view of their talent’s experience, skills and career aspirations in order to achieve a meaningful alignment between each employee’s job responsibilities and an organisation’s overall business objectives.

They improve the candidate experience by enabling them to apply for a job via Oracle Recruiting Cloud or Taleo Enterprise Edition and identify and contact (via InMail) their LinkedIn connections who can best refer them for that job.

“The rapidly changing global talent market is forcing organisations across industries to rethink how they attract, engage and retain employees,” said Nagaraj Nadendla, Group Vice President, Product Development, Oracle.

IANS

Continue Reading
Advertisement

Most Popular