The International Monetary Fund (IMF) estimates that India’s GDP will rise by 9.5 percent in 2021 and 8.5 percent in 2022, making it the world’s fastest-growing economy in both years. Deepak Parekh, the chairman and CEO of HDFC, believes he is in a more optimistic frame of mind than in the previous 50 years.
According to the International Monetary Fund, Covid’s impact on growth in 2021 will not be a one-time occurrence but rather a continuing trend (IMF). On the other hand, the International Monetary Fund anticipates that India’s economic expansion will continue at a rapid pace in the foreseeable future. As former Chief Economic Advisor, Shankar Acharya has earned a reputation for being one of the country’s most doomsday economic forecasters. He mentioned that even though he is confident about the growth and progress of India, India will certainly have some impediments and difficulties in terms of political tensions and related sensitive issues.
The converse is true: net margins sank sequentially due to greater compensation, more recruits, more subcontracting costs, and increased expenses related to travel and facilities. Hiring, retention, and subcontracting expenditures have all climbed year over year in this quarter due to the increasing difficulties in locating and retaining top-tier personnel, as has the cost of providing benefits. Because of an increased attrition rate, companies are becoming increasingly concerned about the supply of competent labor.
According to the study, attrition increased further in the most recent quarter, hitting 19.3 percent, an increase from 17.5 percent the previous quarter. According to the industry organisation, the desire for new-age digital skills is behind this production surge. A countermeasure is that organisations continue to hire more recent graduates while concentrating on training and upskilling the workforce they already have.
According to a recent EY India study, the “worst-case” scenario would see India’s $5 trillion economic growth occur in 2029-30 rather than 2029-30 as previously predicted. This is still lower than the previous high point of the trend growth rate, which was close to 7 percent between 2007-08 and 2010-11, which was reached in the previous two years. It is only 9.5 percent this year and 8.5 percent in 2022-23, even though the trend growth rate will increase to 4.9% by that time. To achieve the goal of increasing the medium-term growth rate to 7 percent or higher, urgent steps must be made.