Indian construction slowdown hits Modi's jobs promise

August 27, 2015

Noida, Aug 17: After a decade labouring on building sites around New Delhi Akhilesh Kumar lost his scaffolding job last month when his employer halted work on an array of 30 residential towers.

mdHe joins more than half a million workers let go from sites around India's capital in the last 18 months, in a stark sign that the ground reality in Asia's third-largest economy is far from as rosy as official data suggests. The deepening downturn in India's crucial building sector makes it easily understandable why Prime Minister Narendra Modi's image as the country's economic saviour has lost its lustre just over a year after his resounding election victory.

"If I don't get another job, I have no other choice but to go back to my village and work as a farm labourer," said Kumar, who is in his twenties.

The decade-long construction boom in burgeoning cities like Noida, where Kumar earned $165 a month, lured millions of labourers from India's rural hinterlands in search of a better life, creating one in every three new jobs.

That process is now going into reverse, undermining Modi's promise to create more employment for the one million Indians who join the workforce every month.

Indebted developers are cutting staff as they slow work on existing projects and postpone new buildings until they clear a backlog of 700,000 unsold homes.

A law to clamp down on "black money" flows that fund as much as a third of real estate deals is further squeezing demand.

Across India, housing starts fell 40 percent in the first half of the year, consultancy Knight Frank said. Cement output grew 0.9 percent between April and June, down from 9.6 percent a year earlier when Modi took office, government data show.

"The slowdown in the construction sector is very, very depressing which will have a negative impact on the overall GDP growth numbers in the first quarter of the current fiscal year," said Samantak Das, chief economist at Knight Frank India.

Rating agency Moody's last week cut India's growth forecast to 7 percent for this fiscal year, against the government's target of 8 to 8.5 percent.

India releases its GDP figures for the April-June quarter on Monday.

HEADING HOME

The lack of jobs is already being felt in the poor northern state of Bihar, source of many of the labourers toiling near Delhi.

In Patna, the state capital, eight out of 20 labourers contacted by Reuters had this year made the 1,000 kilometre (600 mile) trip back from Delhi because they could not find work - pressuring salaries in a region where wages are already low.

According to brokerage Ambit Capital, rural wages may now be falling after growing 4 percent in the year to March - a far cry from the double-digit annual rises between 2010 and 2014.

"Labourers are starving and are ready to work even at lower wages as there are fewer or just no jobs in the construction markets," said Navendu Kumar Thakur, Patna chairman of the Builders Association of India.

The squeeze comes at a bad time for Modi.

Bihar heads to the polls this year, in an election his Hindu nationalist Bharatiya Janata Party (BJP) must win to gain seats in the upper house of parliament where he lacks a majority to pass economic reforms.

HALF-BUILT

Economists say that lower interest rates and a government splurge on infrastructure should eventually help revive construction, which contributes a tenth of Indian GDP.

Modi's party also wants to regulate property markets and tie investor money to specific projects to stop developers diverting cash elsewhere. The slowdown around Delhi, where unsold inventory is highest, shows no sign of abating, however.

Noida, a city of 640,000, has grown rapidly in the last decade, expanding to a point where its middle-class housing complexes now meld into Delhi's urban sprawl on one side and rustic villages on the other.

Around the site where Kumar worked, half-built high-rises now dot the skyline. Cranes and diggers stand idle. His former employer, The 3C Company, has cut staff on the 3,000-unit "Lotus Boulevard" by more than half, employing some elsewhere.

Sales staff at two nearby sites reported a 30 to 50 percent decline in bookings in the last year. Real estate association CREDAI's Rohit Raj Modi estimates construction in Noida employed more than a million labourers at its peak in 2013, at least double today's number.

Even when the market recovers, a shift to mechanisation on larger sites would limit demand for new workers. "From a labour point of view, the peak is over," he said.

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News Network
January 9,2020

Mumbai, Jan 9: India's weddings are famously lavish -- lasting days and with hundreds if not thousands of guests -- but this season many families are cutting costs even if it risks their social standing.

It is symptomatic of a sharp slowdown in the world's fifth-largest economy, with Indians spending less on everything from daily essentials to once-in-a-lifetime celebrations.

Growth has hit a six-year low and unemployment a four-decade high under Prime Minister Narendra Modi. Prices are rising too, squeezing spending on everything from shampoo to mobile data.

Chartered accountant Palak Panchamiya, for example, has already slashed the budget on her upcoming Mumbai nuptials by a third, trimming spending on clothing and the guest list.

"Initially I chose a dress that cost 73,000 rupees ($1,000)," Panchamiya told news agency as she picked through outfits at a recent marriage trade fair.

"But my partner felt it was too expensive, and so now I am here reworking my options and looking for something cheaper."

India's massive wedding industry is worth an estimated $40-50 billion a year, according to research firm KPMG.

The celebrations can last a week and involve several functions, a dazzling variety of cuisines, music and dance performances, and lots of gifts.

Foreigners can even buy tickets to some events.

But these days, except for the super-rich -- a recent Ambani family wedding reportedly cost $100 million -- extravagance is out and frugality is in as families prioritise saving.

"Earlier Indian weddings were like huge concerts, but now things have changed," said Maninder Sethi, founder of Wedding Asia, which organises marriage fairs around the country.

Cracks emerged in 2016 when the Indian wedding season, which runs from September to mid-January, was hit by the government's shock withdrawal of vast amounts of banknotes from circulation in a bid to crack down on undeclared earnings.

Mumbai-based trousseau maker Sapna Designs Studio shut for months as the economy was turned on its head by Modi's move.

"No exhibitions were happening and there were no avenues for us to sell either," said Vishal Hariyani, owner of the clothing studio.

Hopes for a recovery proved short-lived when the cash ban was followed by a botched rollout of a nationwide goods and services tax (GST) in 2017 that saw many small-scale businesses close.

Since then, keeping his studio afloat has been a challenge, with consumers increasingly reluctant to spend too much, says Hariyani.

"We customise our clothes as per their budgets, and now week-long weddings have been converted to just a 36-hour ceremony," he told news agency.

"We have to pay GST, pay workers and even offer discounts to customers," he added.

"The whole economy has slowed down and reduced spending on weddings is a by-product of that. Everyone except the super-rich are affected," Pradip Shah from IndAsia Fund Advisors told news agency.

"It is reflective of how sombre the mood is," he said.

In a country where families traditionally spend heavily on weddings -- including taking on debt in some cases -- the downturn is also a source of sadness and shame, with elaborate celebrations often seen as a measure of social status.

"We haven't even invited our neighbours. It is embarrassing but the current situation doesn't offer us much respite," 52-year-old Tara Shetty said ahead of her son's wedding.

"In my era, we always spent a lot and had thousands of people attending the weddings," she explained.

"My wedding was supremely grand, and now my son's is the polar opposite."

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News Network
May 26,2020

Kasaragod, May 26: Amid relaxation of COVID-19 lockdown norms, Secondary School Leaving Certificate (SSLC) and vocational higher secondary education (VHSE) examinations resumed in Kerala on Tuesday.

Schools in the state maintained social distancing norms and other precautionary measures amid the examination. Hand sanitisers were also provided at the centres while wearing face masks was made mandatory for all students.

Students at VHSS Manacaud High School in Thiruvananthapuram were encouraged to follow social distancing norms while they also underwent thermal screening before entering the examination centre.

In Kerala, VHSE and SSLC exams began today. While VHSE is scheduled in the morning, the SSLC exam is held in the afternoon session.

Senior secondary exams are scheduled to begin in the state from May 27.

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News Network
January 7,2020

Mumbai, Jan 7: Against the backdrop of the attack on JNU students, the Shiv Sena on Tuesday hit out at Prime Minister Narendra Modi and Union Home Minister Amit Shah, alleging that what they wanted was happening, and said such "brutal politics" was never seen before in the country.

An editorial in Shiv Sena mouthpiece 'Saamana' further alleged that the BJP wanted to see "Hindu-Muslim riots" over the Citizenship Amendment Act, but that did not happen.

Since the BJP has been cornered over the issue of CAA, several things are happening out of "revenge", it said.

Comparing the attack on Jawaharlal Nehru University (JNU) students to the 26/11 Mumbai terror strikes, the Shiv Sena said: "divisive politics" was dangerous for the country.

It said the Union Home Ministry's decision to file cases against "unknown" attackers at JNU was laughable. "Those who entered JNU with masks are not unknown," it claimed.

On Sunday, a mob of masked young people stormed the Jawaharlal Nehru University (JNU) campus in south Delhi and targeted students in three hostels, unleashing mayhem with sticks, stones and iron rods, hitting inmates and breaking windows, furniture and personal belongings.

Nearly 34 people were injured in the violence.

"The fallout of JNU attack is being seen elsewhere in the country...what Modi and Shah want is happening. The country is in danger. Divisive politics is dangerous for the country," the Uddhav Thackeray-led party said.

Terrorists who attacked Mumbai on November 26, 2008, were also masked and the same was seen at JNU. Such elements need to be exposed, it said.

"Allowing blood stains in universities, colleges and beating up of students and indulging in politics over the burning situation...such brutal politics was never seen before," the Marathi publication said while terming the attack on JNU students as a "blot" on the law and order situation.

Lashing out at Amit Shah, the Sena said he his in Delhi and busy distributing official pamphlets door-to-door to promote the Citizenship Amendment Act.

There is "confusion and unrest" in the country over the new citizenship law, it pointed out.

"The BJP wanted to see Hindu-Muslim riots over the issue, but that did not happen. The nationwide protests are not being done by Muslims alone. Hindus will also be affected due to the new Act," the Shiv Sena said.

It said the BJP has been cornered over the CAA issue.

Since the prevailing situation is "BJP versus the rest", hence "out of revenge", several things are happening, the Marathi daily said, adding that "there is room for doubt if the JNU attack was part of the revenge."

The BJP has condemned the violence and said universities should stay away from politics, it noted.

"Who brought violence and politics in universities in the last five years? Who is implementing the policy of destroying those who don't agree with your ideology by use of power?" it asked.

Without taking any name, the Sena said those who call students opposing the CAA as anti-nationals, are themselves anti-national.

"When Amit Shah accuses Congress leaders Rahul Gandhi and Priyanka Gandhi of inciting violence, he admits that the Gandhi siblings have that much power to create mass awareness against a law brought in by the Centre and bring people to streets," the Sena said.

One cannot say if the Gandhi siblings incited violence, but one thing is sure that the Union Home Minister and his party are forced to distribute pamphlets to "clarify" on the new citizenship law, it said in sarcastic comments.

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