Posts Tagged ‘GDP’

Only 17out of 474 Indian civil service winners are Muslims

May 19, 2007

New Delhi: A total of 17 Muslims have cleared the written and interview process of the Civil Services Exam of 2006. The top Muslim candidate Shamim Abidi appears on rank 16.

The written exam was help in October-November of 2006 and interview held in April-May of this year. The List of 474 candidates was released by Union Public Service Commission (UPSC) today. The successful candidates are recommended for appointment to Indian Adminstrative Service, Indian Foreign Service, Indian Police Service and Central Services.

The list of 474 candidates include 214 General (including 13 Physically Challenged candidates), 144 Other Backward Classes (including 03 Physically challenged candidates), 80 Scheduled Castes (including 02 Physically challenged candidates) and 36 Scheduled Tribes candidates.

17 Muslims among the list of 474 successful candidates give Muslims a representation of 3.59% which considering their lower number in higher studies is quite remarkable and indication of hard work put on by Muslim students. Another welcome trend this year is an increase in number of Muslim girls clearing the Civil Services Exam.

Appointment to various services is based on available vacancies and merit ranking of candidates. The number of vacancies reported by the Government for the Indian Administrative Service is 89 (45 General, 24 Other Backward Classes, 13 Scheduled Castes and 07 Scheduled Tribes); for the Indian Foreign Service is 20 (10 General, 05 Other Backward Classes and 05 Scheduled Castes); for the Indian Police Service is 103 (51 General, 28 Other Backward Classes, 16 Scheduled Castes and 08 Scheduled Tribes); for the Central Services Group ‘A’ is 294 (152 General, 80 Other Backward Classes, 43 Scheduled Castes and 19 Scheduled Tribes) and for Central Services Group ‘B’ is 27 (15 General, 07 Other Backward Classes, 03 Scheduled Caste and 02 Scheduled Tribe). This includes 18 vacancies for Physically Challenged candidates in the Indian Administrative Service and Central Services Group-“A”& “B”.

17 Muslims selected for Civil Services, By TwoCircles.net staff reporter, Thursday, 17 May 2007

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Employment and Unemployment Situation among Religious Groups in India from NSS

April 8, 2007

This report is based on the seventh quinquennial survey on employment and unemployment conducted in the 61st round of NSS from July, 2004 to June, 2005. The survey was spread over 7,999 villages and 4,602 urban blocks covering 1,24,680 households (79,306 in rural areas and 45,374 in urban areas) and enumerating 6,02,833 persons (3,98,025 in rural areas and 2,04,808 in urban areas).In this survey information on religion followed by each household was collected as part of the household characteristics. The reported religion of head of the household was considered as the religion of all the household members irrespective of the actual religion followed by individual members. Seven main religions were identified in the survey. They were Hinduism, Islam, Christianity, Sikhism, Jainism, Buddhism and Zoroastrianism. Among these the followers of Hinduism, Islam and Christianity formed the three major religious groups. Some of the key findings are stated below: * In rural areas, about 84 per cent per cent of households having 83 per cent of population followed Hinduism whereas 10 per cent of households followed Islam with about 12 per cent of population. Further, about 2 per cent of households and population followed Christianity. In urban areas, the percentage of households and population were about 80 and 77 respectively for Hinduism, 13 and 16 for Islam and 3 and 3 for Christianity. Even after excluding the state of Jammu and Kashmir, having different geographical coverage in different NSS rounds, the proportion of persons by major religious groups remained more or less same.

* The sex ratio was the highest among the Christians (994 in rural and 1000 in urban areas) followed by the Muslims (968 in rural; 932 in urban) and the Hindus (961 in rural; 912 in urban).

* In the rural areas, ‘self-employment’ was the mainstay for all the religious groups. About 37 per cent of Hindu households were dependent on ‘self-employment in agriculture’. The corresponding proportion was 35 per cent for the Christians and 26 per cent for the Muslims. The proportions of households depending on ‘self-employment in nonagriculture’ were 14 per cent for the Hindus, 28 per cent for the Muslims and 15 per cent for the Christians. In the cas*e of ‘rural labour’ households, the proportions varied from 32 per cent (Muslims) to 37 per cent (Hindus). In urban India, the proportion of Hindu households depending on ‘self-employment’, ‘regular wage/salary’ and ‘casual labour’ were 36 per cent, 43 per cent and 12 per cent respectively, whereas the corresponding shares for the Muslims were 49 per cent, 30 per cent and 14 per cent respectively and for the Christians 27 per cent, 47 per cent and 11 per cent respectively.

* In rural India, proportion of households in the lowest three monthly per capita expenditure (mpce) classes combined (viz. less than Rs.320 for a month) was highest among Hindus (14 per cent), followed by Muslims (12 per cent) and Christians (8 per cent). In urban India, the proportion of Households in the lowest three mpce classes combined (viz. less than Rs.485 for a month) was the highest among the Muslims (25 per cent) followed by the Hindus (12 per cent) and Christians (8 per cent) On the other hand, in the urban area, proportion of households in the highest three classes of mpce combined (viz. more than Rs.1380 for a month) was 38 per cent for Christians, 28 per cent for Hindus and 13 per cent for Muslims. In rural areas, proportion of households in the highest three classes of mpce combined (viz. more than Rs.690 for a month) was 47 per cent for Christians, 24 per cent for Hindus, and 20 per cent for Muslims.

* The Christians had the lowest illiteracy rate both for rural (20 per cent for males and 31 per cent for females) and urban areas (6 per cent for males and 11 per cent for females). Except for rural females, the proportion of literates among the Hindus was higher than that among the Muslims. Among the rural females, the illiteracy rates were almost equal among the Hindus and the Muslims (59 per cent). The corresponding rate was as low as 31 per cent among the Christians.

* In the rural areas, Worker Population Ratio (WPR) among the males was highest among Christians (56 per cent) followed by Hindus (55 per cent). The corresponding figure for Muslims was lower (50 per cent). As in the case of males, WPR for females for Christians (36 per cent) and Hindus (34 per cent) was much higher than that for Muslims (18 per cent). In urban India, the WPR among the males was the highest among Hindus (56 per cent) followed by Muslims (53 per cent) and the Christians (51 per cent). The WPR for Christian women (24 per cent) was much higher than those among Hindu (17 per cent) and Muslim women (12 per cent).

* For the rural males in the age group 15 years and above, WPR in the educational level secondary and above was the highest among the Hindus (76 per cent) followed by the Christians (72 per cent) and the Muslims (67 per cent). However in urban areas, it was equal (71 per cent) among Muslims and Hindus and lower (64 per cent) among Christians. For the rural females in the same age group with same education level, however, the rates were highest among the Christians (37 per cent) followed by Hindus (30 per cent) and Muslims (18 per cent). Similar pattern was also observed among urban females in the same age group.

* More than half of the workers in the rural areas were self-employed, the proportion being the highest among the Muslim workers both males (60 per cent) and females (75 per cent). In the urban areas also, the same pattern is observed. The proportion of regular wage/salaried workers was highest among Christians in both rural and urban areas among both males and females. The proportion of casual labourers was highest among Hindus for females in both rural (34 per cent) and urban (18 per cent) areas.

* In rural areas, the unemployment rates (URs) were higher among the Christians (4.4 per cent) as compared to those among the Hindus (1.5 per cent) or the Muslims (2.3 per cent). In the urban areas also same pattern was observed. However, the URs in urban areas were more or less same for Hindu and Muslims (4 per cent). Further URs for females were generally higher in all major religious groups as compared to males in both rural and urban areas. The UR was highest (14 per cent) among the urban Christian women.

Billionaires contribute 25 percent of India’s GDP !

March 13, 2007

Bad Governance Promotes Bad Business

Nandigram violence bespeaks inefficient policies of Indian government

India is a fascinating, incredible nation — the more one sees of it, the more one is mesmerized by its sheer diversity. Many of us Indians, seeing the country from within, wonder how it is perceived by the rest of the world.

In the mid-seventies, there was the “Garibi Hatao” (“Abolish Poverty”) campaign; in 2004, we had the “Aam Admi” (“Common Man”) campaign. Aam Admi was sponsored by the Indian National Congress, the party behind the present ruling coalition government and one that has ruled India for more than 80 percent of the time since independence. The result of the Garibi Hatao campaign, if it can be concluded after only three decades, can be seen by all: 70 percent of Indians live on less that $2 a day and more than 30 percent of these on less than $1 a day. Recent reports showed that 95 percent of rural India, where 65 percent of 1.1 billion Indians live, lives on less than $1 a day, and 5 percent on less than 2 cents a day. In other words, not much has changed.

Incredible India also showed “results” under Aam Admi, as Indians continued to feature in the global billionaires list published by Forbes.

Japan, with a nominal economy more than five times the size of India’s GDP, and a population of less than 1/8th of India’s, has 24 billionaires (combined net wealth of $64 billion) whereas India has 36 billionaires (combined net wealth of $191 billion).

When the billionaires’ wealth is computed as a percentage of GDP, India probably ranks highest in the world, at around 25 percent (even excluding the wealth of Indian residents abroad), whereas the comparable figure for the world is 6-7 percent. For the U.S., it is 12-13 percent, and for Japan, less than 2 percent. India’s share of global GDP is 2 percent. For 17 percent of the population, per capita income is around $700, 1/10th of the global average, and nearly 1/60th of the U.S. average. India’s per capita GNI is lower than Sub-Saharan Africa.

So there goes another feather in the cap of the government’s “unity in diversity” and “Incredible India” bottom line.

The Indian government, led by Prime Minister Manmohan Singh and Finance Minister P. Chidambaram and their colleagues, pursues policies in a mad race to the bottom for growth, the benchmark being China. To record a higher growth rate, the present administration is ready to acquire 20,000 acres of land if not more from poor Indian farmers at dictated prices — acres that will be given to anyone willing to pay $500 million, irrespective of the credibility of the owner. The government will even offer concessions if need be — in the form of free land, free taxes, subsidized mining and more. You name it, toss down a few million dollars, and it’s yours to do with as you please.

In the race to the bottom, a well-researched area in global emerging economics, states export economies deliberately in an attempt to keep their currencies low. When developed and developing giants indulge in this practice, imagine the power that poor Bangladesh or Kenya gain in export competitiveness. So for every winner in this race to the bottom, there will be many more losers. (The real winner is the country that is importing against credit money because in the end it pays less for imports, and thereby contains inflation.)

In the Indian scenario, states are encouraged to indulge in a similar race to the bottom. Like Kenya or Bangladesh, the states of Assam or Bihar have no chance of competing with a Gujarat or a Maharashtra. Thus, along with the bright side of India’s economic growth in a few large states, there remains a darker side in many more states.

When the real estate boom hit India a little late, somehow the billionaires’ portfolio wasn’t filled with 25 percent of India’s land. “How unfair,” decried Indian policy makers. Billionaires contribute 25 percent of India’s GDP in wealth; don’t they deserve to own 25 percent of India’s land? Present policy makers are slowly reserving up to 25 percent of Indian land for the billionaires’ club — not through the constitution, but through another driver called “inclusive growth.” This involves special economic zones (SEZs) that combine the 21st century industrialization drive with the 19th century colonial act of land acquisition.

Just like that, the constitutional reservation fails to make any difference to the millions of the needy poor, some of whom now operate under Maoist-terrorism; on one-fourth of Indian land, there is disenchantment through neglect from administration after administration.

Democracy, economic growth, getting rich, industrialization, SEZs — these aren’t in and of themselves good or bad for society. It’s what one does with them that determines whether they are good or bad.

So we have the latest controversy of forceful land acquisition at a pittance of $25,000 an acre of investment in one proposed capital intensive chemical hub SEZ in Nandigram, in left-controlled West Bengal state: poor villagers (including women and children) of Nandigram were killed or terrorized (including raped) on March 14 by minions of the state administration for their land. The numbers vary from 14 to many more, if local media is to be believed.

Through some simple arithmetic, we can see that at $25,000 per acre of land, the whole of India, including parliament would fall short of attracting 1/15th of the FDI that has gone into China in last 30 years.

If this is not land grabbing in the name of industrialization taking place within Indian states, I don’t know what is.

If government looked into governance and improved it by reducing corruption and making business rules friendly to good businesses rather than bad ones, as it stands now, India would not be able to run its race against China but it still might come up a winner in economic growth for society.

Otherwise, as a citizen, I must say that developments like Nandigram hurt.

Ranjit Goswami, OhMyNews.COM , March 18, 2007

11,000 acres of Muslim Waqaf land alienated to MNCs

February 17, 2007

Over 1,500 acres alienated by APIIC in Manikonda wakf property: Owaisi

HYDERABAD: Majlis floor leader in the Assembly, Akbaruddin Owaisi, alleged that more than 11,000 acres of wakf lands had been alienated to multinational companies and leading software firms in and around the city.

Participating in the debate on the motion of thanks to the Governor on Wednesday, he said Microsoft, Wipro, Electronic City, Gem and Jewellery Park and the Indian School of Business (ISB) had come up on wakf land.

He said 1,600 acres alienated by the Andhra Pradesh Industrial Infrastructure Corporation in Manikonda was wakf property, which has been confirmed by the district administration. These lands were worth over Rs. 20,000 crores. Mr. Owaisi demanded the lease deed with these firms be rewritten in favour of the board.

He sought 10 per cent quota for Muslims in the companies and educational institutions built on wakf land.

Faulting `narrow’ flyovers in the city, he said they would create more traffic snarls. Introduction of bus rapid transit system was the only solution to solve the traffic problems instead of MTRS. He thanked the Government for the old city’s special package.

Mr. Owaisi said the Governor’s address had ignored the five per cent reservation for Muslims and wanted the Government to initiate steps to overcome legal hurdles in its implementation.

The Hindu , 15 Feb, 2007

Chennai visitors no longer entitled to visa-on-arrival programme in Malaysia

December 9, 2006

PUTRAJAYA: Visitors from Chennai, India, are no longer eligible for the visa-on-arrival (VOA) when they land in Malaysia.

They now have to obtain their visas in their own country before entering Malaysia, said Home Affairs Ministers Datuk Seri Radzi Sheikh Ahmad. The ruling took effect from Nov 29.

The VOA, introduced for 24 countries requiring a visa to enter Malaysia was enforced on Sept 1, and available with a RM100 fee at immigration counters. It is valid for a month.

It was introduced to draw an expected 21 million people during the Visit Malaysia Year 2007 period. Among the countries are China, India, Pakistan, Bangladesh and Myanmar.

Up to Nov 6, over 14,500 visitors had applied for the VOA, of which more than 10,000 were from India.

The others were from China (1,634), Sri Lanka (980), Bangladesh (862) and Pakistan (796).

Records showed that 2,789 Indian tourists had overstayed, followed by 355 from China.

Home Affairs Minister Datuk Seri Radzi Sheikh Ahmad said the Cabinet decided last week that the VOA would no longer be issued to those from Chennai as too many of them had over stayed.

“Due to many of them remaining in the country after the visa expired, I submitted a Cabinet paper to put a stop to it. The Cabinet agreed.

“I do not know how long the VOA freeze will be on those from Chennai but the number of overstaying tourists will be monitored from time to time,” he told reporters after launch ing the Biometrics Security System and the ministry’s Immigration Identity Card, cre ated by Multimedia Glory Sdn Bhd, here Friday.

Under the biometrics system the fingerprints of foreign workers are recorded to ensure they are legal workers right from the time they leave their country of origin.

It takes about 0.5 seconds to read the fingerprints, which, he said, was faster than the American system, which took about 40 seconds.

Workers from Bangladesh have been using the system for a year and it has been found to be successful in detecting many illegal workers, he said, adding that it will soon be introduced to workers from other source countries.

“There are about 1.9 million foreign workers in the country with illegal workers numbering between 500,000 and 700,000,” said Radzi.

He plans to have the system at the National Registration Department to enable all min istries and agencies to retrieve data of all Malaysians from one single platform.

On the Immigration Identity Card, he said, it had high security features and that students, workers from various sectors and those regarding Malaysia their second home would be issued with separate cards dif ferentiated by colours.

Workers who renewed their permits next year will be issued with the new cards while issuance of new cards for others will start with university students first, who numbered about 40,000, he said.

Friday December 8, 2006, The Star , Malaysia

NRIs sent $20 billion from Arabian Gulf Countries

November 14, 2006

* India recieved $23 billion remittance during 2005-06 from NRIS
* Non Gulf NRIs contributed only $ 3 billion
* A whopping amount of $ 20 billion was from Arabian Gulf
* Kerala recieved  the huge portion
* FDIS from GCC exceeded $ 2 billion this year
* India calls for more Arab investment

Nov 13, 2006,

New Delhi, Nov 13 (IANS) India Monday reiterated its solidarity with the Arab world, home to over a four million strong Indian diaspora, and called for converting longstanding historical and civilizational ties into a vibrant economic partnership.

‘We should use attitudinal ties between people to enhance trade linkages between India and the Arab world. Oil-exporting countries of the Arab world, in particular, should increase investment in India,’ Finance Minister P. Chidambaram said in his inaugural address at an international conference at the Vigyan Bhavan convention centre on promoting India-Arab economic relations.

The two-day conference, which is being attended by ministers, diplomats, academics, business and opinion leaders from India and Arab countries, has been organised by the Indo-Arab Economic Cooperation Forum and the Institute of Objective Studies.

Underlining India’s centuries old multi-faceted ties with the Arab world, Chidambaram spoke about geographical proximity, long-standing cultural and trading ties and ‘unbroken relation of cordiality’ between the two sides.

He, however, rued that the foreign investment from Arab countries in India are much below potential. Even rich Arab countries are not investing in India enough, he said.

To further accelerate bilateral trade and investment, the minister said that India will be signing bilateral investment protection agreement with more Arab countries and discussions are already going on for negotiating a free trade area (FTA) between the two sides.

Calling Indian workers in the Gulf countries ‘an investment of human capital in the Arab world,’ Chidambaram said remittances from Indians working in these countries worked out to a whopping $20 billion. In the first quarter of this year alone, remittances have exceeded $6 billion, he said.

Bilateral trade between India and the Arab world has been growing steadily and will scale new heights in the future, he said. FDI from Gulf Cooperation Council (GCC) countries has exceeded $2 billion this year.

Besides the continuing cooperation in energy sector, the Arab countries supply nearly 30 per cent of India’s crude oil needs, IT, infrastructure, biotechnology, nanotechnolgy, and financial services are key future areas of bilateral cooperation between India and the Arab world.

Anwar Ibrahim, former deputy prime minister of Malaysia, lauded the rise of India on the global stage and praised the strong fundamentals of India’s economy as exhibited in its high economic growth and its increasing attractiveness as a hub of investment for the world.

Alluding to Indian Nobel Prize-winning economist Amartya Sen’s concept of ‘development is freedom,’ Ibrahim, who was the guest speaker, said that the Arab countries should take a ‘closer look’ at India and called for balancing economic growth with a more humane social order.

‘In India and the Arab world, we have to maximise the opportunities that globalisation is creating to ensure that there is inclusive and all-round growth in our regions,’ said Mohammad Manzoor Alam, president of Indo-Aran Economic Cooperation Forum.

India received the highest inbound remittance estimated at $23 billion in 2005-06, while China received $21 billion. In 2004-05, China received $20 billion and India received $18 billion.

Interestingly, India received the highest inbound remittances with only 22 million non-resident Indians, while there are about 40 million Chinese residing outside China. Western Union managing director (South Asia) Anil Kapur said this was primarily due to the social and family structure in India.

Interestingly, India received the highest inbound remittances with only 22 million non-resident Indians, while there are about 40 million Chinese residing outside China. Kapur said this was primarily due to the social and family structure in India.

“The number of Indians going abroad is increasing every year and the money coming into the country in the form of remittances is also swelling,” MoneyGram International country manager Harsh Lambah said, adding the industry is all set to witness further growth. As per an estimate, about half a million Indians migrate annually.

Kapur also said this industry needs to be more organised as it would directly add to the foreign exchange kitty. Remittances are high in all the southern states, apart from a few in the north like Punjab.

It’s official: India’s dazzling growth fails to dent poverty

October 20, 2006

Mahendra Kumar Singh, 19 Oct, 2006 TIMES NEWS NETWORK

NEW DELHI: Economic growth may have been spectacular since 1993 — that is, post-economic reforms — but it seems to be trickling down rather slowly.

A soon-to-be-released official report has estimated that poverty declined by a mere 0.74% during the 11-year period ended 2004-05. Although there are signs of things moving a little faster, at 0.79%, between 1999-2000 and 2004-05, going by another measure, the number of people below poverty line may have remained unchanged.

National Sample Survey Organisation’s (NSSO) findings show the number of people living below poverty line (BPL) at 22.15% in 2004-05, compared with 26.09% in 1999-2000. In the same period, the country’s GDP grew at around 6%.

This mismatch between growth and its distribution is politically worrying as it indicates a rise in economic disparities. Economists say uneven growth often leads to social unrest which, in turn, can cause problems for politicians.

Anyone consuming less than 2,100 calories in urban areas, and 2,400 calories in rural areas, is classifed in the BPL category.

The NSSO study also shows that poverty declined the sharpest in the poorer states.

Study: BPL population up in Delhi, Maha and Haryana

NEW DELHI: A National Sample Survey Organisation’s study suggests that while economic growth is trickling down very slowly, poverty has declined the sharpest in the poorer states.

Leading them were Assam and the north-eastern states, where people below the poverty line decreased by nearly 4% annually, followed by Jharkhand (2.51% a year during the five-year period), Chhattisgarh (2.15% a year) and Bihar (1.69%). Apart from the slow reduction of poverty, government also seems worried about a lower decrease in poverty ratios in urban areas, compared to rural areas. BPL population in rural areas decreased 4.68% between 1999-2000 and 2004-05, which was over twice the pace of the decrease in urban centres, estimated at 2.12%.

The trend of slower poverty reduction in urban areas, say economists, could be due to migration of the poor from rural areas. But they wonder whether if that is indeed the case, then the rate of actual decline of poverty in rural areas could be over estimated.

The NSSO findings also reveal an increase in BPL population in Haryana, Maharashtra, Delhi, Rajasthan and Goa. This is possibly because migrant labour is moving out of Bihar, Uttar Pradesh and Jharkhand to these states in search of jobs.

There are also fears that dipping state growth rates, as witnessed in the case of Maharashtra, have added to the increase in the BPL population. Among the poorer states, Orissa has the highest proportion of poor — nearly 40% of its population is below the poverty line. The population of poor in Orissa’s villages decreased 8.36% during the five-year period while the urban BPL population fell 1.2%.

Next in line is Jharkhand, which had a marginally higher BPL population of 47.40% compared to Orissa’s 47.15% in 1999-2000. At the end of June 2005, Jharkhand’s poor constituted 34.83% of the state’s population. Bihar remained in the third spot with 32.57% population under BPL.

The estimates were prepared using monthly consumption expenditure of individuals during 365 days on clothing, footwear, education, durables in addition to their medical expenses. This method is called the Mixed Reference Period Method (MRPM). Going by the other measure used by NSSO — Uniform Reference Period which measures poverty based on every consumption for the last 30 days of the survey — BPL population accounted for 27.81% in 2004-05, compared with 35.97% in 1993-94. Economists, however, believe that the methodology is suspect as consumption during 30 days is not the right measure and the government, too, prefers MRPM.

213 million Indians will be unemployed by 2020

August 19, 2006

NEW DELHI (IANS) August 16,2006
A national report on the employment situation in India has warned that nearly 30 percent of the country’s 716 million-strong workforce will be without jobs by 2020.

The report prepared by the recruitment agency TeamLease Services said that the shortage of employment in India can trigger many social security problems as the bulk of the unemployed – 85 to 90 per cent – will be in the age group of 15-29.

The study titled India Labour Report presents the shortage of jobs as the flip side to the much-touted young workforce in the country. It said 213 million Indian without jobs would be a huge task for the government to manage.

It said the quality of those employed in the future is not very encouraging as only 88 million will be graduates, while another 76 million will have passed their senior secondary level.

The bulging population and the expanding workforce will require about 15 million new jobs every year, against the 10 million new jobs being projected by the government.

The scarcity of job opportunities in the organised sector is likely to create a major shift towards the unorganised sector, which is already expanding and absorbing additional workforce.

Of India’s 402 million-strong workforce, only about 7 per cent is in the organised sector.

The unorganised sector is absorbing more labour and has improved upon its ’80s pace of 29.62 per cent growth to 30.29 per cent in the ’90s.
The organised sector, which is under the purview of labour laws, remains more rigid than the unorganised sector, which remains outside the reach of most labour laws.

The report estimates the annual financial “damage” to the exchequer due to the unorganised sector’s leakages in terms of tax revenues at 32 per cent of the total manufacturing sector GDP at Rs 162,000 crore (Rs 1620 billion).

“Unfortunately, labour legislation has been hijacked by a small minority of organised labour,” says Manish Sabharwal, chairman, TeamLease Services. The report lays stress on reducing unnecessary state intervention and over-legislation in the field of labour.

Luxury in India is Rs 65,000 crore business: Study

February 19, 2006

MUMBAI: The Indian customer is spending more on luxury items, whose market is pegged at a whopping Rs 65,000 crore and growing at about 14 per cent a year, a new study reveals.

According to the report by Technopak Advisors Ltd, India currently has 1.6 million households earning over Rs 45 lakh per annum, and each of these households spends about Rs four lakh per annum on such goods and services. The report categorised luxury households and also classified them into four distinct segments.

“While over 1 million luxury households have been slotted as luxuriented, the topmost segment 6-7 million have been termed very affluent, 10 million as getting there and up to 15 million upper middle-class households as mid-affluents,” Technopak Advisors chairman Arvind Singhal said. The research is based on a study that took into account households that earn Rs 40 lakh per annum or more.

The company met 4,000 affluent consumers in 12 cities and covered 17 products and services. Affluence has been defined by car ownership, overseas travel in the last six months and purchase of products in luxury categories.

The categories taken into consideration for the survey included clothing, fashion accessories, timewear, footwear, fragrances, jewellery and digital accessories, furniture and antiques, tableware, collectibles, fine dining and gourment food, wines and liquor, vacation, health and entertainment.

The market opportunity across these categories is estimated at Rs 64,000 crore and is accounted for by categories such as jewellery that has 27 percent of the pie, clothing 16 percent, digital accessories 13 percent, timewear 8 percent and cosmetics and skincare 8 percent.

Technopak’s knowledge company associate director Saloni Nangia said Indian luxury retailing has not taken off due to lack of proper atmosphere. “Organised retailing itself has taken off in India very lately. All the malls have been coming only recently. With more development on in Delhi and Mumbai better retailing atmosphere is being created. This will help in the future growth,” Nangia said.

However, she did not see much contribution of FDI in the segment’s future growth.
PTI