New Delhi: Industries association Assocham has withdrawn its controversial report forecasting 25-30 per cent job cuts.
The report was strongly criticised by the government and trade bodies FICCI and CII for spreading panic.
Finance Minister P Chidambaram set fears to rest with a public statement.
Chidambaram said, “At nine per cent you create more jobs, at seven per cent you create slightly less jobs. But please don't confuse a slow of job creation with job destruction. That is why I think quite rightly Deputy Chairman of the Planning Commission and my colleague Jairam Ramesh have taken a serious exception to ASSOCHAM report which is contradiction to FICCI report. The pace of job creation may slowdown but that does not mean job destruction.”
While a number of multinationals such as American Express, Chrysler and Motorola are axing jobs, fortunately India won't feel much of the impact.
There are other cost cutting options available such as reduction in bonuses, incentives and increments, cutting down raw material costs, even curtailing benefits at middle and senior management positions.
CFO, Naukri.com Ambarish Raghuvanshi says, “The impact is not going to be that great in India. Companies don’t really need to cut jobs. India will be the solution."
Assocham says its report was based primarily on analysis of real estate, brokerage and investment advisory sectors and went on to add that new job opportunities are opening up in education, bio-technology and health.
Rival association CII is now in the process of countering the claims with its own study.