India sees high demand for talent in digital space

Question: While traditional job opportunities are shrinking, I am told that there is a tremendous growth in demand for talent in the digital space. What has been the trend in India?

Answer: The digital economy is booming propelled by the growth in the banking, financial services and insurance sectors. According to reports, demand for talent with digital niche and super niche skills, like Full Stack, React JS, Android, Angular JS, and cloud infrastructure technologies have seen a surge in the first quarter of 2021-22. This is on account of technology transformations becoming a key priority for organisations. Employment in the cybersecurity space is also gaining ground. The overall demand has been reflected in key cities of India, namely, Bengaluru, Hyderabad and Pune. Demand for talent is also increasing in Gurugram and Chennai. The pool of digital talent has also been growing in Tier II and III cities. Some Indian companies are stepping beyond Indian borders to hire technocrats from the Philippines, Vietnam and Sri Lanka. An important shift is observed even in some board rooms where items on the agenda of directors’ meetings include ‘workforce skilling’, ‘resource management’ and ‘automated talent acquisition processes’.

Q: Fuel prices are extremely high in India compared to the Middle East. Can anything be done to bring them down which would lower inflation?

A: Taxes levied by the Central and State Governments make up more than half of the fuel cost. One of the suggestions being considered to lower the taxes is to have a single national rate of tax for petroleum products. However, any change in the Goods and Services Tax would require the approval of three-fourths of the members of the GST Council which comprises of the Union Finance Minister and State Finance Ministers. If there is a uniform levy on fuel across all States of India, it would help to soften the gasoline and diesel prices. This would also help the Reserve Bank of India to maintain its stance on inflation targeting which would help in continuing with a benign monetary policy. This in turn will support economic recovery after the pandemic lockdown.

Q: My old mother in India is constantly being reminded by her bank to furnish her KYC documents. Others persons have also been sending her e-mails to do so. Is this requirement mandatory?

A: While it is necessary to provide the details to your bank for a periodic KYC update, the Reserve Bank has stated that banks cannot freeze accounts until December 31, 2021 on the ground that the customer has not provided the requisite details. The KYC updation process has been simplified. However, some banks continue to ask customers to fill multiple sheets and provide documents which are not required by the RBI guidelines. The central bank has also cautioned the public and exhorted people to be vigilant; no information should be shared like account details and passwords with unidentified persons or agencies who give false threats of freezing of accounts. It would be best to give the necessary documents by visiting the branch of the bank where your mother has her bank account.

H. P. Ranina is a practicing lawyer, specialising in tax and exchange management laws of India.