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Prospects for HR professionals in Gulf returning to India

There is a positive shift towards AI-based recruitment, offering new opportunities

Published: Tue 14 Jan 2025, 8:05 PM

Updated: Tue 14 Jan 2025, 8:06 PM

  • By
  • HP Ranina

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Question: I have been working in the Gulf for the past several years in the HR department of a multinational company. I am planning to relocate to India as I believe there are good prospects in this field with multinationals setting up technology centres. Are there prospects for a good remuneration package in India?

ANSWER: The prospects in India for HR specialists are great if you are prepared to absorb AI techniques. In fact, most HR leaders in India are recruiting people in their department who have specialized skills in AI applications. There is a positive shift towards AI-based recruitment, offering new opportunities for innovation and employee engagement. In an era of growth and constant change, skilling and reskilling of employees is no longer optional. HR departments of healthcare, green energy and infrastructure enterprises are paying the highest remuneration than ever before. AI-enabled coaching and learning are revolutionizing the manner in which talent is developed because skills are the new currency of the workforce. HR departments in India are now geared for building a comprehensive skills inventory to help their organizations remain competitive in a disruptive world. To stay competitive, the HR department has to go beyond traditional roles and focus on developing and enhancing skills which would foster employee agility. Most companies are now paying hefty salaries to HR employees who are familiar with emerging technologies. Compensation packages have increased by 35 per cent to 40 per cent over the last year. Further, there is a rising focus on performance linked remuneration and wealth creation through employee stock option plans. Therefore, in 2025 it is expected that remuneration packages in India will continue to rise for HR executives.

Question: While the number of companies is growing in India, it appears that the main source of employment comes from the unorganised sector. Is there reliable data on this account? What is the quantum of employment provided by this sector?

ANSWER: The Ministry of Statistics and Programme Implementation carries out an annual survey of unincorporated enterprises. These establishments are not registered under the Companies Act. The survey gives data which is based on various economic and operational parameters pertaining to the non-farm sector. The survey which covered the growth of manufacturing, trade and commercial services showed that this sector grew by 12.8 per cent between October 2023 and September 2024.

The survey indicated that the growth has largely been driven by the services sector which revealed that the number of such establishments increased by 23.6 per cent. Employment in this sector grew by 17.9 per cent and the gross value added by these units increased by 26.2 per cent. The survey further showed that the percentage of female owned proprietary establishments increased from 22.9 per cent in 2022-23 to 26.2 per cent in 2023-24. A most promising trend indicated that establishments using the internet grew from 21.1 per cent in 2022-23 to 26.7 per cent in 2023-24. This highlights greater adoption of technology by small businesses and a higher absorption of digital technology.

The unincorporated sector plays a pivotal role in the Indian economy by not only providing livelihood to millions of young Indians but also by establishing a critical supply chain with the production of key components, goods and services. The annual survey for 2025 has already begun which will make it possible to determine precisely for the fiscal year 2025-26 the GDP figures both at the national and State levels.

H. P. Ranina is a practising lawyer, specialising in corporate and tax laws of India.

H. P. Ranina is a practising lawyer, specialising in corporate and tax laws of India.

Question: With millions of young workers who are partially employed or have casual jobs, what steps are being taken to impart the necessary skills which are relevant in this day and age?

ANSWER: The Indian Government is determined to impart skills to the young not just for enabling them to take up jobs but also to be self employed as entrepreneurs. The Ministry of Skill Development & Entrepreneurship has tied up with five central ministries to impart sector-specific and demand-specific skills as part of the Skill India Mission. The objective is to impart short term training to young engineering graduates as well as impart training for reskilling and upskilling them so that a pool of skilled workforce is created. The five ministries which have been selected are the Ministry of Health & Family Welfare, Ministry of Housing & Urban Affairs, Ministry of Tourism, Ministry of Consumer Affairs and Ministry of Social Justice & Empowerment. Skilling would include both short term training of 300 to 600 hours and recognition of prior learning based upskilling which will be of 60 to 132 hours. The Ministry of Skill Development has also tied up with the Ministry of New & Renewable Energy to skill more than half a million youngsters under the National Green Hydrogen Mission.

HP Ranina is a practising lawyer, specialising in corporate and fiscal laws of India.



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