New Delhi, Oct 29: India is too feeling the economic pressure. A week after major MNC's handed over pink slips to its employees, now its the turn of Indian firms to do the same. They have planned to lay off a quarter of their employees in the next 10 days to contain costs in the face of shrinking margins amidst the economic turmoil, ASSOCHAM said on Wednesday, Oct 29.
Trade body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors. Expansion has slowed in Asia's third-largest economy in the last two quarters, from the 8 percent or more annual growth in the past four years, with high interest rates crimping demand and on the global financial crisis.
The Reserve Bank of India last week cut its forecast for growth in 2008/09 to 7.5-8 percent from its earlier view of 8 percent. This compares with the economy's 9 percent growth in 2007/08.