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Indian IT firms may face layoffs due to US visa curbs: Assocham

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New Delhi, April 19: With the US tightening the norms for H-1B visas under the President Donald Trump’s ‘Buy American, Hire American’ campaign, the industry paper by Assocham has expressed its worries for the IT segment on Wednesday.

Assocham paper said, with the new US visa norms, the Indian IT companies are bound to face disruptions by way of higher costs and even some laying off work force back home, and the rising rupee is aggravating the situation further for the technology export firms.

Nearly 86 per cent of the H-1B visas issued for workers in the computer space go to Indians and this figure is now sure to be scaled down to about 60 per cent or even less, the paper said.

Remittances from the US would decline, hurting the balance of payment. World Bank data showed the US was the second largest source of remittance for India in 2015, behind Saudi Arabia, and about $10.96 billion, nearly 16 per cent of the total inflows, were sent to India.

The industry chamber expects it to disturb the balance by 8-10 per cent.

As the cost pressure would increase, aggravated by rising rupee leading to lower realisations, the Indian IT firms may be forced to displace work force. “In that case, the chances of layoffs are real,” said Assocham Secretary General D.S. Rawat.

He said the IT industry apex organisations and the government need to work out a joint strategy to deal with the unfolding situation.

In the last three months, the Indian currency has gained by at least five per cent against US dollar, reducing net realisations for software exporters, among other export-oriented sectors.

According to the Assocham paper, the reverses resulting from the tightening of the H-1B visas would force IT giants to effect fundamental changes in their strategies in terms of hiring, salaries, jobs, impacting employees in India too.

With Britain already hiking the minimum wage requirement to euro 35,000 for tier II visa immigrants, this latest move by the US will act as a definitive dampener to the Indian outsourcing industry.

The alternate solutions for the Indian outsourcing industry are: Investing “near shore centres” – facilities close to the US; focus on local hiring in America; and to work virtually, which is becoming easier with the wider adoption of cloud services and greater digitisation, the paper said.

IANS

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TCS first Indian company to achieve $100 billion m-cap

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Mumbai, April 2: IT bellwether Tata Consultancy Services (TCS) on Monday emerged as the first Indian listed company to cross the $100-billion mark in terms of market capitalisation (m-cap).

Around 11 a.m., the m-cap of the company stood at Rs 675,934.95 crore or $101.60 billion on the BSE.

Shares of the company rose over four per cent to a new high of Rs 3,557 per share.

On Friday, the IT major’s shares rose over seven per cent to Rs 3,419.80 per share, taking its m-cap to over Rs 6.50 lakh crore or around $98 billion — close to the $100 billion mark.

The company’s shares had surged a day after its quarterly results announcement, which reported a net profit for Q4 at Rs 6,925 crore — up 4.6 per cent — from Rs 6,622 crore in the same period in 2017 and up 5.8 per cent sequentially from Rs 6,545 crore a quarter ago.

It also announced 1:1 bonus shares of Re 1 face value to its investors at the end of fiscal 2017-18.

IANS

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Key Indian equity indices open on flat note

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Mumbai, April 23: Key Indian equity indices opened on a flat note on Monday.

Around 9.16 a.m., the wider Nifty50 of the National Stock Exchange (NSE) inched up by 14.55 points or 0.14 per cent to trade at 10,578.60 points.

The barometer 30-scrip Sensitive index (Sensex) of the BSE, which opened at 34,493.69 points, traded at 34,425.68 points — up 10.10 points or 0.03 per cent from its previous session’s close.

The Sensex has so far touched a high of 34,500.55 points and a low of 34,396.03 points during the intra-day trade.

The BSE market breadth was bullish with 432 advances and 322 declines.

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Centre congratulates Bengal for becoming revenue surplus

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Secretary, Revenue, Dr. Hasmukh Adhia
Hasmukh Adhia, Finance Seceretary.File Photo

Kolkata, April 22 (IANS) The Central government has congratulated the West Bengal government as the state has become revenue surplus in March, officials said.

In a recent communication to state Chief Secretary Malay De, Union Finance Secretary Hasmukh Adhia said: “As far as West Bengal is concerned, the revenue gap has come down from 33.4 per cent in August to (-) 3 per cent in March. The revenue shortfall in West Bengal has been coming down steadily but there seems to have been a spike of a major gain in March where suddenly your revenue deficit has now become revenue surplus.”

“I would like to congratulate West Bengal for such a performance. We do hope that the trend will continue in future months also,” he wrote.

Adhia also mentioned the performance of Goods and Services Tax (GST) collection is improving with some ups and downs.

IANS

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