Click to play videoNew Delhi: The finance minister say there will be no recession in India but with top global companies like Citibank announcing job cuts running into thousands can India seizes to remain isolated.
What started in the US few months ago as a housing mortgage crisis has slowly engulfed the whole world into an economic meltdown.
It had to begin in the US with. Hewlett Packard cutting 24,000 jobs, Goldman Sachs slashed 4,000, DHL slashed 10,000, American express shed 7,000 jobs.
In Europe - auto major Renault laid off 6,000 employees, telecom majors Italia and British Telecom cut 5,000-10,000 jobs.
The latest cut of 50,000 jobs globally by Citigroup's is by far the largest. This is 14 per cent of the bank's total employee strength. Citigroup says there will be some job losses in India. Even the labour minister warns of tough days ahead
''I would not like layoffs, but reality is reality if there is no demand for things one can produce and if there is no market than he has to layoff,” says Labour Minister Oscar Fernandes.
But will India see layoffs in similar scale to the US? Human resource consultants say India is certainly not isolated. An survey by HR firm Ma Foi has predicated a 30% dip in the creation of fresh jobs. Hiring is on hold for most companies and layoffs could follow.
“This situation could happen in India soon,” says Business Head, Ma Foi Management Consultants Anil Kumar.
The most vulnerable sectors are Banking, finance, hospitality, real estate, IT and ITeS. And right now the only ray of hope seems to be public sector companies like State Bank of India announcing hiring of 30,000 people.
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