EMPLOYMENT GROWTH IT INDUSTRY
Cabinet clears Rs 10,000 crore SME Growth Fund to boost small and medium enterprises
The SME Growth Fund aims to provide long-term growth capital and address financing gaps for these businesses. By targeting manufacturing and services sectors, the initiative will facilitate expansion and enhance competitiveness. Strategic investments in Tier II and Tier III cities will foster balanced regional development as well.
Cabinet approves Rs 10,000 crore SME Growth Fund for small and medium enterprises
The Union Cabinet approved a Rs 10,000 crore SME Growth Fund to support micro, small, and medium enterprises. This fund is part of the government's initiative to create champion MSMEs in India. Finance Minister Nirmala Sitharaman outlined various measures to enhance liquidity support and accessibility to risk capital. Additionally, the government allocated Rs 24,566.27 crore to the Ministry of Micro, Small and Medium Enterprises.
The economics of India's biggest export industry goes topsy-turvy
India’s $315-billion IT industry faces a structural shift as AI boosts productivity but puts pressure on pricing, revenue and entry-level hiring. Clients are demanding more output for less, while spending shifts towards AI, cloud and in-house capabilities.
India's services sector growth at 3-month high, but quarter weakest since 2022, PMI shows
India’s services sector expanded at its fastest pace in three months in September, with the HSBC Services PMI rising to 55.2 on stronger domestic demand. However, quarterly growth was the weakest since early 2022, reflecting softer hiring and exports. Manufacturing gains lifted the Composite PMI to 55.9, signalling a moderate recovery.
US services sector cools in September, price pressures building
The US-Israeli war with Iran has raised prices of energy and related products and led to shortages of commodities shipped through the Strait of Hormuz. Diesel prices are at record highs, hitting farmers and truckers. Economists warned that higher prices could soon spill over to other sectors and broaden inflation pressures.
Ayush services sector supports 1.76 million livelihoods; women constitute 43% of the workforce
The Ayush services sector supports 1.76 million livelihoods in India and has a significant female workforce. Women's participation in organized segments, including hospitals, exceeds 50 percent in several areas. The sector has the potential to expand substantially, generating an estimated USD 216-318 billion by 2047. Ayurveda remains the largest individual system of revenue generation within the sector, contributing significantly.
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Eurozone business growth hits over 3-1/2-year high despite inflation worries, PMI shows
Eurozone business activity experienced significant growth in September due to strong demand despite inflation concerns. The S&P Global Eurozone Services PMI and composite index reflected this growth, reaching high levels not seen in several months. Strong performance was observed in Spain and Ireland, along with an accelerated recovery in Germany. Inflation pressures increased, raising speculation on potential European Central Bank interest rate hikes.
Blockbuster Accenture show holds out hope for battered Indian IT
Accenture's latest financial performance has sparked renewed optimism among investors in the Indian IT sector. The strong results hint at a revival in client discretionary spending. Analysts underscore the need for Indian IT firms to enhance their artificial intelligence capabilities to successfully tackle upcoming challenges. Accenture's forecast suggests improved market conditions and steady margins, painting a picture of a resilient industry.
Employers may soon be able to claim ITC on GST paid for employee insurance cover
The GST Council is gearing up to consider a proposal regarding input tax credit for employee insurance premiums. Currently, businesses cannot claim input tax credit on insurance policies purchased for their employees. An 18 percent GST is imposed on these group insurance policies, impacting business expenses.
IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation in focus
Research advisory UnearthInsight expects the top-five IT companies to grow 0.5-1% quarter-on-quarter in the second quarter of FY27, with little improvement over the April-June period.
IT Q2 review: Muted growth, steady margins likely; deal conversion, AI deflation in focus
India's leading IT firms are projected to exhibit modest revenue growth and stable margins for the second quarter. Analysts anticipate that discretionary spending will remain constrained due to geopolitical issues affecting client budgets. As such, decision-making cycles are expected to prolong for upcoming quarters. Additionally, AI advancements are predicted to impact traditional services and revenue generation timelines.
Textile output surges, but apparel production stays in the red. What’s driving the divergence?
Government data reveals growth of 8 percent in industrial output for August 2026, driven by manufacturing. Apparel production, however, declined by 7.4 percent in the same month, indicating ongoing challenges. In contrast, the textile industry has shown strong growth of 13.1 percent, signaling a divergence in trends. Experts suggest that upcoming festive seasons could boost demand for apparel manufacturing in the near future.
Charting the global economy: US employment growth moderates
The labor market in the US revealed sluggish growth in September, with only 29,000 jobs added, alongside a significant deceleration in wage increases. In Europe, inflation hit a three-year peak, triggering conversations around possible interest rate hikes. In contrast, China reported the weakest growth in industrial profits since November, hindered by rising expenses.
IT sector faces another muted quarter as pricing pressure, geopolitics weigh on growth: Report
India's IT sector is expected to see limited growth in Q2FY27 due to various pressures and headwinds. Predictions indicate large-cap firms might experience a modest revenue increase, while mid-cap companies could outperform. Although margins might improve slightly, profitability could continue facing challenges from investment needs. The Nifty IT index has dropped significantly, reaching multi-year lows due to weak demand.
Artificial Intelligence: Which jobs are going to be replaced by AI? Which age group will be exposed the most? Here's what experts say
Which jobs are not safe from AI? Questions are being raised over the nature and magnitude of impact of Artificial Intelligence in coming times.
AI breaks India’s linear growth model, but campus hiring remains weak: Nasscom’s Rajesh Nambiar
Nambiar said large IT and BPM companies have cut back on campus hiring over the last three years, which is not expected to change while the industry is in the middle of its shift to AI.
India's white-collar hiring rises 2% in September as AI/ML jobs hit record growth: Naukri
India’s white-collar hiring grew 2% year-on-year in September, with the Naukri JobSpeak Index rising to 3,053 from 3,002 a year earlier. AI/ML hiring led sectoral growth with a 20% jump, followed by auto at 11%. Hyderabad recorded the strongest metro growth, while Mumbai and Delhi-NCR declined 6%.
U.S. hiring stalls at 29,000, yet Dow, S&P 500 and Nasdaq surge: Why Wall Street welcomed September’s weak jobs report
US jobs report and markets: The U.S. added only 29,000 jobs in September, far below the 90,000 economists expected. Unemployment also edged up to 4.2%. On the surface, that looks like bad news for the economy. Wall Street saw another side of it. The Dow rose 0.64%, the S&P 500 gained 0.90%, and the Nasdaq climbed 1.39%. The reason was the growing possibility that weaker hiring could reduce pressure on the Federal Reserve to keep interest rates high.
Tier-2 IT firms likely to lead Q2FY27 growth despite Gen-AI, geopolitical challenges: Report
The report said the overall demand environment remained largely stable during the quarter, but weakened in September amid rising geopolitical uncertainties.
IT firms reboot fresher hiring, but experienced pros hold upper hand
Fresher hiring, which fell to a record low of around 110,000 in FY26, will reach 115,000 to 135,000 this fiscal year, according to recruitment firm Quess Group’s estimates. This marks a likely increase of 4.5-22.7%.
Govt plans Rs 2,500 crore direct infra investment in Bengal tourism sector
The West Bengal government is set to invest over Rs 2,500 crore in tourism infrastructure. Tourism Minister Shankar Ghosh highlighted this investment during the ICC Hospitality and Tourism Summit. The initiative aims to make various destinations across Bengal accessible to international tourists. Additionally, the government plans to establish a hospitality institute to develop local manpower for the sector.
IT companies forecast to post muted second quarter
Sector leader Tata Consultancy Services and its nearest rival, Infosys, are projected to report weak numbers for the three months ending September 30. Analysts tracked by ET on average forecast TCS to post organic revenue growth of 0.5% sequentially and 2.8% from a year earlier. They expect Infosys to report a 1.1% quarter-on-year and 0.2% year-on-year increase in organic revenue, which excludes income from acquisitions.
Solar Industries’ Omnia acquisition to reshape growth, debt outlook
Solar Industries is performing well in the market despite broader weaknesses, primarily due to strong earnings. The planned acquisition of Omnia Holdings is expected to significantly increase revenue and profits in the long term. Management forecasts that combined revenues may substantially rise by FY28, enhancing overall financial performance. However, the acquisition could lower short-term profitability due to increased debt.
Output, wages, GVA... manufacturing sector is on a roll: GVA grows 9.6% to Rs 26.9 lakh crore; sector adds 1.4 mn workers
India’s formal manufacturing sector recorded broad-based growth in 2024-25, with GVA rising 9.6% to ₹26.9 lakh crore and industrial output increasing 7.8% to ₹165.2 lakh crore, according to the Annual Survey of Industries. Invested capital grew 11.1% to ₹75.6 lakh crore, while the number of establishments rose 2.6%.
India’s industrial jobs cross 2 cr mark in 2024-25
India's industrial workforce increased to over 2 crore in 2024-25, driven largely by the manufacturing sector. The registered manufacturing sector saw broad-based growth, with a notable rise in employment and wages. Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, and Haryana led in manufacturing employment during this period. Gross value added in manufacturing rose significantly, indicating continued expansion in industrial value addition.
India’s 8% global gems, jewellery share has room to grow
India's gems and jewellery sector currently accounts for 8% of global exports but can expand into new product categories. NITI Aayog's Pravakar Sahoo emphasized the need for greater value addition and improved global market presence. Collective efforts are essential among industry players, government, and consumers to ensure competitive growth in the sector. Enhanced transparency regarding diamonds can improve trust and boost consumer confidence in India.
US private job growth picks up sharply in September: ADP data
US private sector hiring experienced a significant rebound in September, with employers adding 90,000 jobs, up from 38,000 in August. This growth, led by the education, health care, and leisure industries, is accompanied by solid pay increases, although wage growth continues to lag behind inflation, impacting workers' purchasing power.
Double-engine government in West Bengal poised to witness "golden period" in coming days: Union Minister Jitin Prasada
Prasada stated that the Centre is planning to set up export facility centres in every district across the country so that industrialists can enjoy a seamless experience and greater ease of doing business, rather than having to travel to Delhi.
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