World Financial Cricis and its Impacts

World Financial crisis hasn’t left any industry or any part of the world. Job cuts, leave without pay, reducing regional offices, marketing and advertisement cuts, restricting bonus pay etc are the common steps that are taken by the organizations worldwide to fight this financial meltdown.
Jet Airways, major player in aviation industry of India had lay off 800 staffs on 13th October 2008.The move comes a day when Kingfisher and Jet Airways glued to form an alliance to reduce costs and improve operational efficiencies. But the political pressures by Indian political parties like Shiv Sena and Maharastra Navnirman Sena, headed by Raj Thackeray forced Naresh Goel, chief Jet Airways to take off his decision back.
Just after three days on 16th October 2008, Air India offered its 15,000 staffers leave without pay to save Rs 75,000,000 annually. But according to the statement of Aviation Minister, Praful Patel given on 21st October 2008, there will be no job cuts in Air India.
Kingfisher Airlines, headed by Vijaya Mallaya had also decided to cut salary by 10% from the present digits. Also trainee pilots will be hired on a fixed salary of Rs 20,000.
Meltdown also has profound effect on Auto Industry. ‘Cut in production’ is the eminent step taken by the most. India’s biggest auto company disengaged its 300 temporary employee at Jamshedpur unit. Mahindra & Mahindra, the country’s leading manufacturer of utility vehicles generally deploys more than 600 temporary workers at its Nasik Plant. All India Trade Union Congress confessed that down turn has forced company to trim their workforce.
In Banking sector, Cholamandalam DBS finance Ltd, joints venture of DBS Bank of Singapore & $ 2.4 billion Murugappa group has decided to close 75 of its 260 branches and also sees of nearly 200 employees. Its wonder that till now private banking giants like HDFC and ICICI has not taken steps like this!
In IT sector, Infosys has denied on any job cuts. In the 2nd week of October there was rumor that consultancy major TCS may cut variable pay, but after the Q2 result, TCS on 21st October decided to give full component of variable pay for the 2nd quarter of this fiscal. Call centers and business process outsourcing providers are among industry sectors in India that are likely to cut more than 25 percent of their staffing in the next 10 days, according to a report by a trade body.
Associated Chambers of Commerce and Industry of India (Assocham) said jobs cut would be across steel, cement, construction, real estate, aviation, It-enabled services and Financial services sector.
Meltdown is not only affecting main industries but also the education sector especially professional courses. Twelve brilliant students of IIT- Kharagpur who were selected through campus last year by US based IT firms have received regret letters in September stating that they cannot be taken because of internal re-organizing. Presently Aviation Professional courses popularity is decreasing by seeing the present scenario. But people from the industry are debating that recession is the short term process and education and career should not be judged by comparing up with global crisis, as it will affect the every sector.

Modern Retailing in India

1. Organized and modern retailing form around 9% of the total retail in the country.
2. Modern retail refers to stores operating in experiential formats and providing customers with a pleasurable shopping environment.
3. Some steps that given new turn to modern retailing in India are
a) Launch of retail venture by Reliance Industries- ‘Reliance Fresh’ and ‘Reliance Digital’.
b) Other significant development is the announcement of the global retail giant –‘Wall Mart’, entry into India for setting up stores through franchise agreement with the Sunil Mittal’s Bharti Group.
4. The size of modern retailing put together is around $ 29 million in India.
5. India’s retail progress is so rapid that it has been ranked for the second year in 2006 in the Global Retail Development Index (GDRI) as the most attractive market for the global retailers to enter.
6. Organized retail in India is expected to grow at the rate of 35%.
7. It is estimated that organized retailing will be 20% of the total retailing by the end of year 2008.
8. According to reports, India retail industry is the largest industry in India with an employment of around eight percent. This industry contributes to over 10 percent of the country's GDP. It is expected that by 2016 modern retail industry in India will be worth $175- 200 billion.
9. India is one of the largest producers of fruits and vegetables in the world. Moreover, India's food market is valued at $70 billion, which is doubling every three years.
10. The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment.