Domestic-focused sectors lead return to hiring | business | Hindustan Times
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Domestic-focused sectors lead return to hiring

With exports struggling to stay afloat, the domestic economy, led by the jobs market, is leading the economic rebound. According to a labour ministry survey, the majority of non-exporting units have created additional jobs during the April-June period compared to the end of March 2009.

business Updated: Aug 16, 2009 22:48 IST
HT Correspondent

With exports struggling to stay afloat, the domestic economy, led by the jobs market, is leading the economic rebound.

According to a labour ministry survey, the majority of non-exporting units have created additional jobs during the April-June period compared to the end of March 2009.

The automobile sector, which reported significant rise in vehicle sales in the last few months, has shown signs of expansion, creating 18,000 additional jobs during the April-June period.

The leather sector, one of the worst hit by the global recession, has emerged as a beacon of hope. The average monthly increase in employment of non-exporting units in the leather sector at 4.18 per cent during the period has resulted in the creation of an additional 10,000 jobs.

Information technology (IT) and the business process outsourcing (BPO) sector, largely dependent on overseas contracts, appear to be doing well within the domestic economy. Around 15,000 additional jobs were created in “non-exporting” IT/BPO units during the first quarter of the current fiscal year.

While exports plunged for the ninth successive month in June, the factory output rose 7.8 per cent, the strongest growth in 16 months, triggering hopes of a strong economic rebound in the coming months. Manufacturing, which accounts for 80 per cent of the overall industrial output, grew 7.3 per cent.

Addressing senior officials of the income tax department last week, Finance Minister, Pranab Mukherjee said that global economy had started stabilising and early signs of revival of the Indian economy were already visible.