Indian Economy

JOBS MARKET BUOYANT, BEATS PREVIOUS ESTIMATES
Anjali Prayag, December 20, 2010
The Hindu Business Line

While last year at this time a subdued mood pervaded the employment market across industries, functions and regions, this year has been one of increased confidence and companies have been upbeat about creating job opportunities and hiring talent. And, as expected, all the employment trend surveys conducted by HR firms point in the same direction.

The latest results of the Ma Foi Randstad Employment Trends (METS) survey shows that the organised sector in India created 7.40 lakh jobs between January and September 2010 and about half that number (4 lakh) would get added in the current quarter. METS had also predicted early this year that one million jobs would be created during the year and the report says that the growth has been higher than anticipated with the creation of 1.13 million jobs. Healthcare, real estate and construction, hospitality, IT and ITeS lead the employment growth momentum.

DELHI CREATES HIGHEST EMPLOYMENT IN 2010
December 20, 2010
The Financial Express

As India is back on track with high growth rate, Delhi & NCR has reported largest employment generation in 2010 by creating 1,13,897 jobs in the year. Large scale hiring was in place during the third quarter of 2010 with the Commonwealth Games 2010 being a significant contributor for the region in terms of hiring. “Delhi and NCR region has created 44,183 jobs during the period of October to December 2010, which is the highest in the year so far,” said E Balaji, director and president, Ma Foi Randstad.

Mumbai ranks second in employment generation in 2010 with 1,07,806 jobs. According to the Naukri Job Speak index, although November witnessed lower hiring figures across cities and industries, the stable three-month moving average indices indicate sustained growth in hiring activity. Hitesh Oberoi, CEO and MD, Info Edge India said “With new budgets and plans kicking in from January onwards in many companies hiring should start looking up again in the next quarter.” As for the full year, BFSI, trade, real estate and hospitality sectors have played a key role in this growth.

LAPTOP DEMAND IN GUJRAT GROWS BY 60%
Business Standard

With e-literacy picking up pace in the state, Gujarat’s desktop computer demand is showing a robust growth of over 15 per cent as smaller towns open large business prospects for IT hardware companies.

Similarly, laptop demand is seen growing at an attractive 60 per cent growth rate per annum, an industry body informed here in Ahmedabad.

According to industry players, the demand for computers from tier-II and tier-III cities of Gujarat is rising at a faster pace. Kirit Thakkar, president, Ahmedabad Computer Merchants Association (ACMA) informed that the demand from the smaller towns is growing faster, however not much has been tapped so far.

Real Estate Sector

INDIA’S REALTY SECTOR NEEDS TITLE INSURANCE
Sanjay Vijayakumar, Chennai, December 20, 2010
Financial Chronicle

Concept of title insurance in India has been on sidelines for long. In an interview, Sameer Dhanrajani, country head of Fidelity National Financial India, says once the insurance bill is passed, the firm would be keen on setting up shop in India and that title insurance would change the landscape of realty industry.

Edited excerpts:

Why there is a need for title insurance in India?

Title insurance is one of the key areas to be looked at when buying into the Indian real estate market. Data from property bought over the last 100 years show a lot of challenges in terms of title and bad loans. Our knowledge shows

REALTY INVESTMENTS FETCH HIGHER YIELD
The Economic Times


Investments in real estate yield lucrative returns if the cardinal principles are followed. The norms for investments may vary depending on the asset category – residential or commercial.

Similarly, the potential for capital appreciation depends on whether the investment is in Tier I or Tier II cities. At the same time, managing the asset also assumes importance in order to sustain the gains reaped over the years.

IT’S BETTER TO BUY PROPERTY WITH HOME LOAN
The Economic Times

Most homebuyers need a home loan to buy a residential property. There are some who prefer to buy using their own funds. But there are risks associated in such cases.

Many people have invested in vacant plots without seeking a site loan and there are instances where such investments have gone sour.

The process of seeking a home loan not only assists a homebuyer in tiding over the financial need, but also helps him to a great extent in the due diligence process.

Infrastructure

PROPER URBAN PLANNING IS A PRE-REQUISITE FOR DEVELOPING BETTER CITIES IN THE FUTURE
Neha Bhatia
The Economic Times (Delhi edition)

The Indian real estate Industry is consolidating its position and strengthening its fundamentals as the economy get sets for traversing a high economic growth trajectory. It is estimated that by 2030 the GDP of the country will multiply five times. There will be 590 million people living in cities, nearly twice the population of USA today and 91 million urban households will be middle class, up from 22 million today. During the next two decades $1.2 trillion capital investment is necessary to meet the projected demand in India’s cities. This is because 700-900 million square metres of commercial and residential space needs to be built and 2.5 billion square metres of roads will have to be paved, 20 times the capacity added in the past decade. In this background the recent Mc.Kinsey global institute’s report on India’s Urban Awakening has also brought forth some major concerns for Indian real estate industry.

The recently held Real Estate Convention, organised by The Economic Times, was the perfect platform to deliberate upon major issues and discuss concerns related to the real estate sector.

Highlighting that new challenges of governance come along with rapid urbanization, Navin M Raheja, managing director, Raheja Developers said, “The country is still running on the old archaic laws and here we need to bring about certain changes. There should be national mapping of the land records. There should be special provisions for SEZs, predetermined processes to get plans sectioned, and clear acts and by-laws to provide a boost to the real estate sector.”

But planning should not be related to physical infrastructure argued Anurag Mathur, MD – India, Cushman & Wakefield. “Plan for not only physical infrastructure, but also for social and economic infrastructure,” he said.

Availability of adequate funds for real estate projects is crucial for the development of this sector. Parry Singh, founding partner, Red Fort Capital touched upon the problem that financing options are very limited when it comes to large-scale projects. However, R V Verma, CMD, National Housing Bank was of the view, “Too much of funds coming in without considering the rigidity of supply may lead to inflation in the real estate prices. Thus a bridge between demand and supply is needed to ensure affordable housing flourishes.”

CREDAI LAUNCHES TRAINING FOR CONSTRUCTION WORKERS
The Times of India

PUNE: Construction workers will be given updated training in plastering, masonry, carpentary, plumbing and other allied activities under an agreement signed by the Pune chapter of the Confederation of Real Estate Developers’ Associations of India (Credai, Pune) with the National Skills Development Corporation (NSDC). The training, which is under phase I right now, will be extended to other trades soon, said Satish Magar, president of Credai, Pune, on Saturday.

While the target is to train 100,000 construction workers over a 10-year period, about 20,000 of them will be trained over the next three years, Magar said.

It is an onsite, learn-and-earn programme where the training campus shifts to the construction site rather than the participants shifting to a fixed campus. The cost of the first phase is an estimated Rs 30 crore, of which the developers and contractors will bear Rs 12 crore and the NSDC will bear the rest, said vice-president J P Shroff.

TATA POWER TO ADD 1,900 MW IN 2011 FROM MULTIPLE SOURCES
Mint

Mumbai: The Ratan Tata-led Tata Power, aims to add 60% of its installed generation capacity by commissioning over 1,900 MW from multiple sources in 2011.

“Next year there will be a series of projects which will be commissioned…we have 800 MW in Mundra, 1,050 MW in Maithon’s two units, 120 MW in Jojobera with Tata Steel, 100 MW in wind and 25 MW of solar in Gujarat,” the company’s executive director (Operations), S Padmanabhan, told PTI in Mumbai.

Tata Power has an installed power generation capacity of about 3,000 MW presently.

He said the coal-fired Maithon project in Jharkhand is in the “final stages” of completion and the company expects to commission the first of the two 525 MW units by March 2011 which will be followed by the second one, expected to be running in the July-September quarter.

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