IT biggies vroom back on job street With business from large foreign customers as well as domestic projects picking up, software firms are hiring like never before. India’s top IT firms, including Tata Consultancy Services, Infosys and Wipro, are set to hire nearly 90,000 this year, compared with only around 20,000 last year. This is the highest hiring growth recorded in the IT sector since recession.
World leaders fail to corner China on yuan The world’s financial leaders failed to reach agreement on how to contain an escalating currency dispute that has threatened to undermine global co-operation on economic recovery. Despite loud calls from the US, Europe, Japan and other countries, the annual meeting of the International Monetary Fund did not succeed in placing significant pressure on China to allow a prompt and meaningful rise in the value of its currency. The high jobless rate in the United States, along with the looming mid-term elections, has prompted the administration to intensify calls for China to allow its currency to appreciate in the hope that it will increase American exports and help create jobs at home.
Take country roads, RBI tells foreign banks The government and RBI, will nudge foreign banks in India to operate in unbanked areas and relatively smaller towns, in new rules for conversion of their existing branches here to fully-owned subsidiaries of their parent banks. It will encourage foreign banks who wish to commence business here and all those already operating in the country to open branches in tier III to VI cities — far away from the major metros where most of these banks focus on, besides the hinterland. Foreign banks were hoping for a liberal treatment in terms of branch expansion in a fully owned subsidiary regime, hoping to expand in some of the major metros and towns.
Patni Computer opens 500-seat facility in China IT and BPO services provider, Patni Computer Systems, announced the opening of a new ITO delivery center in Suzhou, China. Patni’s new Suzhou delivery centre is set to serve the Yangtze region — the largest and one of the most highly developed manufacturing bases for international companies. The centre will focus on delivering development and support services to cater to Japanese, the US, European and local multi-national corporations.
WTO drug seizure case to stay until EU changes Customs laws: Khullar India will not withdraw its case against the EU at the WTO for wrongful seizure of drug consignments belonging to Indian companies until the regional grouping agrees to amend its Customs laws to prevent such action in future. Commerce and industry minister Anand Sharma had said last week that the 27-member EU had accepted India’s position and agreed amended its rules. He had also said that India would now want to withdraw the case filed at the WTO.
$300b to be raised to bridge core gap: FM The government will try to raise over $300 billion through long-term debt to fill the gap in funding for infrastructure projects in the 12th plan period (fiscal 2012-17). The government recognises that the debt of longer maturity is usually not available because of the various constraints such as absence of benchmark rates, asset-liability mismatch during the tenor of debt in case of financial institutions and high cost. IIFCL - India Infrastructure Finance Company Ltd.
As trade grows, banks pitch for Rs.-yuan trade Indian rupee and the Chinese yuan are largely non-convertible currencies, export and import transactions between the two countries have dollar legs. The rupees that an Indian buyer pays his bank for Chinese imports are converted into dollars, which, in turn, is converted into yuan with the help of other banks for paying the Chinese seller. It’s a transaction that can take 2-3 days due to differences in time zones, and involves certain operational costs that can be pruned, if payments can be directly settled in yuan and rupees. A direct yuan-rupee trade would cut transaction time and the transaction cost would be lower.
Curtains on Games, India reaps rich haul - COMMONWEALTH GAMES