RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss

RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss

SUMMARY

India Is Likely To Lose Over 6.4 Lakhs of Low Skilled IT Jobs By 2021

RBI Governor Urjit Patel, in a recent interview at an IMC (Indian Merchants’ Chamber) event, stated that, “he is not ‘overly pessimistic’ about the employment scenario in the IT sector, pointing out that mushrooming startups can compensate for job losses”.

According to HfS Research, the US-based research firm, the IT sector in India is more likely to lose over 6.4 Lakhs of ‘low skilled jobs’ due to automation and other perfectionists policies by 2021. However, the stakeholders in various ecosystems in the country are planning to take corrective measure for the purported loss generated.

Also, as per a Nasscom June 2017 report, there has been a significant fall in the export revenue growth of IT industry’s Software. It’s known to be 7%-8% in 2017-18 while it was 8%-10%, in the previous fiscal.

Furthermore, IT firms have been accused of slowing down their hiring process in this diminishing job scenario. But emerging startups have filled up the gaps by providing employment opportunities as stated by the governor.

Patel further added, “While there could be pressure on employment in some of the IT sectors, it is not necessarily in terms of literally a job destruction, but may be the growth rate is affected by what is happening. The number of startups in that same space is almost compensating for most of this.”

Earlier in May 2017, the Government had come up with a criterion where the startups have to showcase the number of jobs they are able to generate in order to avail the benefits under Startup India Campaign.

Patel also stated that there is a “contradiction” between what the reports show and what he gets to hear from the industry. “When you talk to businesses themselves, I rarely hear about jobs destruction,” he added.

In the past few months, a number of IT majors such as Infosys, Wipro, Cognizant, IBM and Tech Mahindra have either announced or are considering job cuts.

(The development was reported by Firstpost.com.)

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss-Inc42 Media
RBI Governor Urjit Patel – Not ‘Overly Pessimistic’ On IT Jobs, Startups Can Compensate For Job Loss-Inc42 Media
You’re in Good company