Business Today

changing the goalposts

WHAT MAKES FOR A GREAT workplace? If you had a choice, what kind of an employer would you like to join? How would you choose between two organisations that offer similar compensation and perks?As more millennials join the workforce, many of the old theories are being tested and found wanting. Some things have changed because companies cannot offer or promise things that employees looked for in yesteryears. Others because the world has changed and with it, the aspirations of the people joining the workforce. Finally, because entire sectors and businesses are being redefined, workplaces are changing quite dramatically. All of these show up in the results of the Business Today-People-Strong Best Companies to Work For Survey this year.Take the first one. Earlier generations valued stability in an organisation highly. Few…

on shaky ground

AS THE COUNTRY goes to elections, Prime Minister Narendra Modi and his Finance Minister Arun Jaitley would have preferred to boast about the economic achievements of the government. Unfortunately, as more numbers trickle in, it is becoming increasingly clear that the Indian economy is in a bit of a spot. The macro numbers – overall inflation, trade deficit, GDP growth, etc – still look respectable, but everything else is pointing to major distress. The Index of Industrial Production (IIP) data released recently shows that production is growing at a snail’s pace. This is the fourth month in a row when the IIP has been sluggish. While one can explain it away partially as the result of a high base effect (IIP during the same period last year was pretty high),…

accounting jugglery

ONLY 73 percent of ₹3,15,884 crore (total capital expenditure) earmarked for the whole year was transferred to various government departments until the end of January 2019, according to the Controller General of Accounts data. In the last fiscal, the government had transferred 97 percent of its capital expenditure budget by the end of January 2018.The Ministry of Road Transport and Highways received 69 percent (so far) of its budgeted ₹68,564 crore capital expenditure (whereas it had received 95 percent the previous year). Against 90 percent the previous year, Railways has got 68 percent (₹53,060 crore), and the Ministry of Petroleum and Natural Gas got only 52 percent instead of last year’s 99 percent.It would be premature to conclude that ministries will end up not spending the entire amount, however the…

virtual battle

THE VIRTUAL ADVERTISING battle is yet to take off, even as it is expected that political parties’ social media spends will rise by over 150 percent this election.Social media platforms such as Facebook and Twitter are gearing up to combat fake news. Facebook has expanded its third party fact-checking programme in India; and Twitter has launched its ads transparency centre in India through which it would show billing details of all political ad campaigns. These measures, however, haven’t translated into incremental ads from political parties. The 2019 elections are expected to see a fair bit of buzz on social media platforms, but as of now, it looks like the bulk of the action will come from politicians’ personal handles. While many BJP politicians are veterans on Twitter, now even Priyanka…

on hold

(PHOTOGRAPH BY REUBEN SINGH)THE GOVERNMENT’S much vaunted New Industrial Policy (that would have subsumed the 2011 National Manufacturing Policy), appears to have been put on hold.With elections approaching, progress on this front seems near impossible though the government had circulated a discussion paper in 2017 pushing ‘Make in India’ aggressively. On multiple occasions, government functionaries said the policy was finalised and even hinted that cabinet approval was around the corner but there was no official word on what happened thereafter.The discussion paper is visionary, focussing on new technologies like Artificial Intelligence and robotics, reducing regulations, bringing new industries at the forefront and at the same time promoting manufacturing, job creation, industrial infrastructure creation, credit for MSMEs and foreign investment. The new government must ensure that it swiftly moves on the…

first off the block

THE STATE BANK of India is the first to link a part of its deposits and lending to an external benchmark. Savings deposits of over ₹1 lakh are linked to 2.75 percent minus the repo rate of 6.25 percent. Similarly, cash credit of over ₹1 lakh is linked to 2.25 percent plus the repo rate. The objective is to encourage faster transmission of any repo rate cut or hike by the central bank. While this is a commendable move, there is a lot more to be done both by the SBI as well as by the banking industry. Deposits and loans across categories should ideally be linked to an external benchmark.SAVINGS DEPOSITS OF OVER ₹1 LAKH ARE LINKED TO 2.75 PERCENT MINUS THE REPO RATE OF 6.25 PERCENTEasier said than…