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Autos, SME lead job creation in India

Friday, November 19, 2010
By a business reporter

A saying by an anonymous author goes ‘Many people quit looking for work when they find a job’. By such a parameter there are two sectors in India at this point of time where folks could go to stop searching for jobs.

These would include the auto and the SME (Small and medium enterprise) sectors. A sector that is a major part of the Indian economic spectrum is the automotive sector. ‘On the canvas of the Indian economy, the automotive industry occupies a prominent place,’ notes Naukri.com in a report analysing jobs in the sector from February 2010 to date.

The sector is important since it has forward and backward linkages with several key segments of the economy. The automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. The Naukri.com study on jobs in the Auto sector shows that the sector has clearly revived from the pangs of the slowdown.

Commenting on the trend V Suresh, Executive VP and National head Sales, Naukri.com said “India Inc has been witnessing a sustained growth momentum backed by firm demand from industries and consumer. With Auto Sales zooming, automakers are cranking up their capacities and car models resulting in strong hiring trends across functions.”

The other sector where there is considerable confidence is the SME (Small and Medium Enterprises) sector. This sector which is often described as the growth engine of a resurgent Indian economy is expected to increase its headcount on the back of an improving economic scenario in India.

Indian entrepreneurs are more bullish on recruitment than their counterparts abroad, with two-fifth of entrepreneurs (40%) surveyed saying they will go on a hiring spree in the next six months compared to the 36% global average. Entrepreneurs are also just as keen to hire returning mothers (36%) as larger businesses, according to information provided by Regus a provider of workplace solutions.

In a testimonial to the spirit of entrepreneurship, Regus found that entrepreneurs across the globe are now more prepared to take the gamble for growth and hire new staff vis-à-vis larger companies.

So Regus has polled opinions of business owners globally to obtain an idea of the SME sector. The survey canvassed the opinions of over 5,000 entrepreneurs in 78 countries asking them about their recent revenue and profit trends, along with their intentions to hire in the coming six months

The survey found that entrepreneurs are more likely to be flexible about work location (76%) than businesses overall (66%). ‘This indicates that accommodating staff needs is a priority that must be met for SMEs to secure top talent,’ noted Regus. In India, 78% of businesses are flexible about their employees working location, 37% intend to add staff. In a clear support to modern trends 60% of businesses plan to hire mothers returning to the workforce.

This is particularly important for us given that in India, SMEs account for 45% of industrial output, employ over 60 million people and are expected to produce 22 % of the economy by 2012; this has strong implications for the nation’s Economy.
 

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