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Small units, informal biz to help economy, says report

New Delhi, Dec 30 (KNN) Unorganized and small enterprises come handy when the economy is in difficult times since these sectors have inherent strengths, a report said.
"Since our economy still remains a good mix of organised and unorganised, large corporate and small enterprises, a large number of people in rural India are dependent on agriculture and tertiary industries; there are inherent and inbuilt strengths which come handy when the chips are down," the study conducted by Associated Chambers of Commerce and Industries (ASSOCHAM) said.
“These sectors will stand out despite the fact that the present state of economy where in a large majority of sectors, net employment is being lost and not created does not support large scale employment," added the report.

Further, the study pointed out that the Information Technology will remain the net aggregator of jobs in 2014.
“The US economy is showing signs of improvement which was also reflected in the Federal Reserve announcing the tapering calendar of its USD 85 billion a month bond buying programme.

“A large number of American firms are expected to increase their IT spend as consumer sales pick up there,” the study said.
Over 60 per cent of the India’s 75 billion software and service exports are dependent on the US market.

Continuous pressure on rupee will help increase the net income of IT companies and they will keep hiring, it pointed out. 

Pharma sector will continue to hire in 2014. But because of some setbacks and tightening of regulations in the US and some other markets, the companies will have to invest more in improving their manufacturing and Research & Development.

Further, the study said that agri-based industries are expected to do better in 2014 on the back of a good rabi crop.

"The positive spin off would be evident in a whole lot of industries which are directly linked such as tractor and farm equipment manufacturers, irrigation firms and those involved in developing and selling seeds and fertilisers", it said.

On banking, the study said that 2014 is expected to be a better year for the sector.

"The NPAs would be reduced since the focus is very much there on the issue and there are signs of recovery in some segments of the economy. Besides, a huge number of backlog vacancies have to be filled up in public sector banks."
For the private banking sector, new licenses, which are likely to be given before April, will throw up new job opportunities.

While the new banks will leverage technology, job opportunities will arise both in brick and mortar as also in development and implementation of technology solutions, the study added.