Why we are obsessed with money

What a way to exist!

For most of us, practically the whole day all we are thinking is about money and more specifically how to have more money!

As if money was the only thing in life. Unfortunately for most of us, circumstances just do not permit any other thought!

We are running behind money most of the time which is almost akin to have become obsessed with money. Everything that we are doing in life is centred around money.

Unfortunately, this is because we need money for anything and everything that we do. There’s nothing wrong and what are you doing, however the problem is that over time, it becomes a compulsive habit to keep earning more.

That’s where the danger is. The problem is that there is a point where from we chase money as an addiction, we chase money because we like to do so. If we did not chase money we would not know what to chase now because we get out identity from money and the amount of money we have.

Another thing is that right from childhood we are always taught and our minds are conditioned that everything that we are doing is going to be for the sake of earning money.

There is no one who told you that money is just a means, and then there is something greater in life to achieve. Some examples are legacy; building something, charity; to giving something / helping someone, passion; pursuing something and living; simply to enjoy life and your money

We have got addicted to this and how!

There are three reasons for this:

First, we are what we do. It is the human behaviour. I know I should exercise and I don’t. I know I should eat healthy and I don’t. I know I should spend time with my kids and I don’t. I know that, yes, money isn’t going to make me happy and I still keep trying to make money.

We live by the laws of inertia, in a pattern which is hard to break. But we have to break it. For ourselves and for the sake of people and reasons for which we are chasing money.

Secondly, we need signals of progress. Money is a measure of how far you have progressed in life. The more the money you have the more you can make sure your progress. It’s simply the logic of evolution. People need validation of their success. Bigger house, bigger car, branded goods and list goes on.

Thirdly, it’s the easy way out. It’s only human to avoid difficult things. Important things are very difficult to measure.  Have I been a good father or husband? Have I groomed my child well?  Such things take years to measure and we still don’t have answers.

So, should we not be focused on creating money for ourselves?

I’m not saying that. Definitely create. Take care of yourself for sure!! Use it to the maximum to make yourself happy!!! You need a certain amount and beyond that is extra.

The definition of their certain amount is naturally different from one person to another. If that extra is going to happen easily, without stress and without your involvement, then its fine. Basically don’t kill yourself for that extra. Be Smart.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a certified financial planner, wealth manager and financial freedom coach.

How the RBI actually helps you

Most of us in Mumbai, see this huge structure called the Reserve Bank of India and wonder what it really does. It’s also a tourist attraction!! It has so many other offices and again one wonders why they need to have so many offices. I’m going to try and highlight a very interesting part of RBI’s work and how it helps us directly on a day-to-day basis.

The RBI does a review of the monetary policy of the country at frequent intervals during the year. So how does the monetary policy help us investors to take smart decisions?

Monetary policy is a tool by which the RBI decides to raise interest rates or reduce interest rates or keep them steady.

In our country, as we’re an oil importing nation, this decision is very closely linked to Oil. Oil to a large extent contributes to inflation. We all know what happens when inflation keeps rising. We in India unfortunately do not see too much of inflation falling and things becoming cheaper.

Oil is Not Well

So when oil prices rise i.e. we see a rise in crude oil prices almost instantly we can expect rising food prices. This is because there is going to be a rising cost pressure for manufacturing & services. This rise obviously gets passed onto the retail consumers.

When this happens RBI adopts a hawkish stance, tries to pull money out of the system by raising interest rates. Now when interest rates rise no one seems to be interested in borrowing. This immediately puts a brakes on money circulation.  Less money chasing goods decreases the demand for money. This way it controls inflation.

There is yet another tool that the RBI has and that is known as the CRR or the cash reserve ratio.  This ratio in simple words means the amount of cash that the bank must maintain with the RBI as the percentage of the total assets. So when this increases banks are forced to park more with the RBI and this is also a way to control inflation.

On the other hand when things look dull, when there is a recession of sorts, the RBI comes to the rescue and gets into action to kickstart growth in the country. It does this by lowering the interest rates. This we all will understand quite easily because we see a direct benefit of this happening. We see a fall of interest outgo in our EMI’s for the home loan that we are carrying. New loans become cheaper.

Individuals are motivated to go out and make purchases, whether it is for a washing machine or a piece of real estate. Businesses are motivated to go out and borrow to buy more machinery, to expand capacity, to hire more staff and manpower and basically do everything that will add to the growth of business.

Economic growth results as a result of all this. It is also during this time that stock market rises, we see a rally in stock prices and mutual fund NAV’s jumping higher and higher each day. There is prosperity all around.

Critical Role

As you can see that the central bank of the country has a very very important role to play.  If it makes a mistake, things can go really wrong.  Imagine like the USA or Japan if our interest rates were very low; everyone would run to borrow, they would borrow more than they require because it would be cheap and easy to borrow. And that is very individuals would run into what is known as the debt trap, because someday you’ll have to pay back.

Each day the central bank attempts to make sure that everything in our country remains stable and financially there’s nothing that goes wrong dramatically.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

The year of the bond, once again!

We are not talking of James Bond, we are talking of investment bonds.

We are in a situation where the fixed deposit rates are at a general low and there is a lot of discontent among depositors of fixed deposits.

Whenever we see a situation like this, one way or the other, the bond markets come to the rescue. It comes to the rescue of smart depositors, who are agile to move their money from fixed deposits to bond funds.

Let’s understand what is happening and why.

What Exactly is Happening in the Bond Markets?

It is likely that in this year, investors of bond funds will make handsome gains. Bond prices may rise and there may be capital gains. Investors of bond funds not only earn the rate of interest, but also earn capital gains. So that way, they make more than the return they would make on fixed deposits. The returns could be a high single digit or sometimes as high as double digits.

Over three years, this will become practically tax free or the tax would be a very small amount. So, basically, I am thinking that a rally will happen in the bond market. There are three main reasons for this — reduction in government borrowing (which is favourable), recovery of trading losses (which is favourable) and no change in monetary policy (which is neutral).

A word of caution, however, that such bond market investments are also subject to bond-market volatility and should be considered ideally with the help of a financial expert.

Before proceeding further, let us, therefore, quickly explain a bond, bond fund and bond market. We need to do this because few people understand the bond markets and even fewer invest in the bond markets.

Bond is nothing, but a commercial transaction where the borrower is issuing a bond to the lender and the lender will earn a certain rate of interest. When interest rates fall, everyone becomes interested in owning that bond.

As a result, the demand for the bond increases, the price of the bond increases and the bondholder makes capital gains.

A bond fund is a fund where ordinary investors pool in their money and a fund manager buys them a portfolio of bonds.

Moving onto the Reasons For a Rally in Bond Funds…

Now, the fundamental reason for a rally is reduction in interest rates as it stimulates economy and growth.

Firstly, the government is a massive borrower of funds. So a reduction in government borrowing reduces the demand for money in the economy. As a result, prices of bonds rise and this contributes to capital gains for bond holders.

Secondly, the Reserve Bank of India (RBI) recently announced that the commercial banks and RBI, which are the largest lenders to the government, will have another year to offset losses they have incurred on account of buying government bonds in the past. This action will lead to a rise in the price of bonds and this contributes to capital gains for bond holders.

Lastly, on one side due to the rise in oil prices, there is more inflation and thus more money is needed for circulation in the economy. On the other side, many government bonds are maturing, which will provide money supply. So, it is likely that we see a neutralising effect and thus RBI will take no action. This inaction here will support capital gains as explained above. Hence, this year might be a year of good gains for the bond investors.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Five new financial goals for you this summer

I am going to try and explain to you why the summer holidays of April and May are great months to get a lot of things started, financially speaking.

This time period in a way resets the financial clock. You also have the option to hit the reset button on everything you have done so far; financially speaking of course and hope to do better things better than you did last year.

Let’s look at some of the new and unusual things to do in April.

  • Make a learning budget

Learn something about money or anything you like. The best way to make money is to learn something about money. Just like if you wanted to learn cooking you will get into the cooking class. If you wanted to learn swimming you would enrol in the swimming class. If you find learning about money is too daunting task than learn something which is close at to your heart or related to your work. If you learn something new, there’s a possibility that you will use your new ideas to generate new income and in turn that will generate new wealth for you.  So make a budget, enrol somewhere and spend that budget. How about a % of your annual income? Spend it for sure!

  • Plan a unique holiday 

When you’re by yourself and without your mobile phone you will have the opportunity to think! When you have time to think, suddenly good ideas will come to your mind.  You may think this is silly but you can be sure that you will be amazed if your drivers experiment just once. So it might be a good idea to go for a holiday just by yourself. If you find that too intimidating, join a group of strangers. You can combine that with the adventures experience if you like.  Be extra careful if you’re going with your special buddies. Do this only if they are going to be in a position to help you discuss your idea and make it bigger. They must play the role of complimenting your thoughts. So make a schedule to do this holiday and obviously make a budget to make it happen. Think & create new ways of making wealth.

  • Make a prediction and make it happen

Be brave. Let’s aim to grow and multiply net worth by 50% by the time you come to the end of this financial year. This is not a joke and it is easier than you can imagine.  I’m speaking about NETWORTH and I’m not talking about return on investment. If your networth is Rs. 100 today, all I’m saying is that let’s aim to make this a 150 by the end of this year. This networth comprises of all your savings till date. This can be achieved by simply saving aggressively every month for the next twelve months. Just put this into a recurring deposit or liquid fund so you don’t spend it.  We just have to prove to ourselves that this is possible. Where and how we will invest this money will think about that later.

  • Eliminate a negative belief 

I want to give you an exercise here. Write down all your negative beliefs you have about money and wealth. Most people are not able to achieve the desired level of wealth because they think about wealth negatively. So even if you are earning a good amount of income you will never see yourself becoming wealthy. Examples are money causes problems, money causes a fight, managing money is complicated etc. Then for each negative thought, you have written down the positives i.e. the opposite for a few months. Soon negatively biased feelings will evaporate.

  • Make a new investment; something you have not done before

Again here you do not have to be a financial expert. The idea is to learn something new. There are hundreds of investment options. Our objective here is to learn something new. Talk to your advisor and seek his or her guidance. Just a word of caution here; don’t do anything which is speculative or is something that you just can’t understand. Do what do find easy you understand and do that then.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Seeking financial freedom? The time is NOW!

John Lewis famously remarked, “If not now, then when? If not us, then who?” This is so appropriate in the current financial world that we live in.

That statement will leave to rest every other argument that is conservative and against the idea of wealth creation. We are often faced with the situation where there is no option but to create wealth. Read on to know why!

Interest rates are painfully low. For all those diehard fans of guaranteed investment returns, there’s hardly any place to go to. Thinking of fixed deposits? Feeling happy with 7%? And fully taxable? That period is over. Period.

That doctrine of investing into pure fixed deposits and similar instruments is unfortunately standing challenged. There is no option but to sprinkle it with a combination of a little something that will add to the returns earned from fixed income type of securities. In fact this category of investors are in a way, best placed in terms of the current tax laws.

They can earn about 9-10% with minimal or near zero tax over about five years and more. Starting to generate rate of return above the inflation level of 7% is starting to create wealth. So there it is; there is no option but to move in the direction of creating wealth.

For more evolved investors, who invest in equities and who and still sitting on the sidelines tend to run out of patience every now and then. They are sometimes waiting for the right time, sometimes waiting for correction, sometimes waiting for valuation and sometimes waiting for just nothing. Sometimes, just too busy to take action!

I totally understand not wanting to lose hard-earned money. But if the money does not move it will stagnate. That’s the problem with money.

Hit the Ground Running

Inaction and inactivity kills it. Makes it costly to hold. Makes us lose opportunities, sometimes small and sometimes significant. I know of many people including my dad, who just kept investing into equities and holding forever. No doubt they were hugely (big HUGELY) better off then the people in the same time zone. I think they could have done far better with some smart lessons on asset allocation. This is because if they compare the growth rate of their holding over a period of 20 or maybe 30 years the compounded rate of return earned is often not impressive.

It is just marginally better or a few percentage points above the fixed deposit rate. Hence the need for asset allocation, which simply put is not to have all eggs in one basket at any given point in time. These sections of investors anyways create wealth, and, asset allocation is the tool that ensures that the process of wealth creation continues uninterrupted. So again there it is; even for this section there is not option but to start enhancing their wealth creation activities, else returns will continue to remain forever mediocre.

Then there are skeptics and there is nothing much for skeptics of everything, except that they need a serious dose of financial education. Perhaps what if needed is a proof of concept and for that, which better country to live in other than India where financial transparency in investments is so high that I sometimes feel, it comes from another planet.

 Your Money Needs Action

Today, there is a whole lot of variety to choose from and we have never been more spoilt for choice. But the most important thing in all this is to understand that your money needs action. It needs activity and for that the time is now!

And furthermore, if you asked me this question 10 years ago; I would have said that, the Time is NOW. If you ask this question 10 years hence, I will still say the Time is NOW. Any time is the right time to start the process of creating wealth. All that is important is that you take your first step; then continue it all the way with zeal and determination… till you have the level of wealth that you desire. And if you accumulate more than you need, still do it and share it with the world.

If you want your financial freedom; then the Time is NOW!

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager and Financial Freedom Coach.

Young Turks: Here’s the success story of venture fund Aspada

Venture fund Aspada was co-founded by Kartik Srivatsa and Thomas Hyland in 2012 and has made 17 investments so far across Fin-tech, agriculture, health and edu-tech startups.

Young Turks takes a look at their investment thesis, their differentiated VC model and meet three of their portfolio companies – Capital Float that underwrites unsecured loans to startups and SMEs; Dunzo, a hyper local concierge and delivery player that is also Google’s first direct startup investment in India; WayCool, a Chennai-based agriculture-tech startup.

Vested interests behind ‘harassment of taxpayers’ charge: CBDT

Amid reports of en masse issue of prosecution notices to small companies, the Central Board of Direct Taxes (CBDT) on Monday clarified that there had been no mass harassment by the Income Tax Department as it had filed only 1,400 prosecutions during the current fiscal for various offences under the Income Tax Act.

It said the Mumbai Income Tax TDS (Tax Deduction at Source) office had issued prosecution show-cause notices only in a limited number of big cases where over Rs 5 lakh of tax was collected as TDS from employees and the same was not deposited with the Income Tax Department in time.

The remarks came after Congress leader and former Finance Minister P. Chidambaram alleged that department’s “overzealousness” to prosecute taxpayers for failure to deposit TDS amounted to “tax terrorism”.

The CBDT said that some defaulter companies and vested interests were deliberately misleading the media to thwart action against themselves.

“Having deducted tax from employees and other taxpayers and not depositing the same in time in the government treasury is an offence punishable under the law. It also affects the interest of the employees from whose salary the tax has been deducted by the unscrupulous employers,” it said.

It added that in the last one month, only in 50 big cases prosecution notices had been issued, out of which, in 80 per cent of the cases the TDS tax default was above Rs 10 lakh and in 10 per cent cases, it was between Rs 5 and Rs 10 lakh.

“In the remaining 10 percent cases, TDS default is of more than Rs 1 crore… Prosecutions have also recently been launched against four big business houses where more than Rs 50 crore of tax was collected by them from the taxpayers and yet not deposited with the government in time,” it said.

The CBDT said that such “legal and rightful action” was being projected by the vested interests as if the department was going overboard to harass small employers.

“It would be pertinent to note that in a country of 130 crore people where around six crore returns are filed every year, only a total of 1,400 prosecutions have been filed so far for various offences under the Income Tax Act during this financial year.

“This, by any stretch of imagination, cannot be termed as mass harassment by the Income Tax Department. Therefore, to say that prosecution notices en masse have been sent to taxpayers for minor defaults is completely incorrect and misleading,” the CBDT added.


Here’s what experts have to say about pre-poll alliances ahead of 2019 general elections

Just two days after, opposition parties joined forces against Prime Minister Narendra Modi, finance minister Arun Jaitley on Monday said it’s going to be advantage BJP in the next general election as an aspirational society will not commit a “collective suicide” by voting for a short-lived political alliance.

The two-fold strategy of the opposition parties for the 2019 general elections is to pursue anti-Modi agenda and take advantage of the electoral arithmetic, he said in a Facebook post titled ‘Agenda for 2019 Modi Vs Chaos’.

CNBC-TV18 caught up with Sanjay Jha, spokesperson, Congress; Narendra Taneja, spokesperson, BJP; Manisha Priyam academician and political analyst and Ghanshayam Tiwari spokesperson, SP, to discuss pre-poll alliances and the war of words.

Davos 2019: Many of the economies will not grow as much as they did in 2018, says EY’s Carmine Di Sibio

From the sidelines of the World Economic Forum (WEF), Davos 2019, CNBC-TV18’s Shereen Bhan spoke to Carmine Di Sibio, global chairman and CEO designate at EY.

On 2019 economic outlook, Sibio said, “We do believe there are some negative headwinds in terms of the global economy. Many of the economies maybe will not grow as much as they did in 2018 but we don’t believe 2018 was bleak.”

The year 2018 was pretty good and we think the same thing about 2019, maybe a little bit slower, he said.

Manufacturers must be made accountable for lifelong emission control of automobiles, say experts

The Supreme Court on Monday favoured widening of judicial scrutiny of a case pertaining to use of cheat device in diesel cars to flout emission norms in vehicles made by German auto major Volkswagen by bringing other auto majors under the scanner.

The court has also expanded the scope of the investigation against Volkswagen, following the 2015 global emission scandal. The apex court has said that that they would leave it to the NGT (National Green Tribunal) to decide if other carmakers should also be probed for possible violations of regulatory norms.

CNBC-TV18 caught up with Sanjeev Ailawadi, counsel for petitioners in the case and Anumita Roy Chowdhury, ED research and advocacy at CSE (Centre for Science and Environment) to discuss the court’s order.

Sanjeev Ailawadi said, “The tests which were conducted on Volkswagen group vehicles showed that their pollution increased by as much as 4 to 9 times, now that is a substantial increase. There was a report which was conducted by ARAI and the ARAI report went to the extent of saying that up to 2.2 times higher on the road would have been a very normal phenomena but for them to go up by as much as 4 to 9 times is a very phenomenal transgression from what the expected norms are.”

Anumita Roy Chowdhury said, “It is a very important development because I am not looking at the Volkswagen case only as a criminal case. I think we will have to take it up to an entirely different level altogether to bring laws to fix manufacturers responsibility for real-world emission performance of vehicles on the road.

Spicejet may connect London with Delhi, Amritsar from summer

Budge carrier Spicejet is likely to launch its much-awaited international long-haul operations from this summer with operations to London from New Delhi and Amritsar, an industry source said.

The Gurugram-based airline is also looking to operate wide-body A330 planes on these routes, the source said. A long-haul flight ranges 6-12 hours in duration.

With a fleet of 45 Boeing 737s and 737 Max planes, Spicejet currently flies to eight international destinations, which are of up to four hour duration.

“Spicejet is looking to fly daily to Heathrow from Amritsar and to Gatwick from New Delhi. The airline may lease A330s to operate these proposed services,” the source said.

While the Amritsar-London Heathrow flight may commence from March-end, which is also the time when the summer schedule of the airlines comes into effect, the services to Gatwick are expected from May, the source added.

The airline spokesman was not available for comments.
Two domestic full service carriers–Air India and Jet Airways currently offer services to the Heathrow airport.

While Air India offer services from New Delhi, Mumbai and Bangalore, Jet operates from Mumbai and New Delhi.

Apart from Spicejet, IndiGo is also reportedly planning to fly to London. It has already announced it will operate services to Turkish capital city Istanbul from New Delhi, though launch date has not yet been firmed up.

Crisil downgrades non-convertible debentures of IL&FS’ Jharkhand road project

In a fresh setback for debt-ridden IL&FS, rating agency Crisil has downgraded the non-convertible debentures of a road project in Jharkhand.

Crisil has warned that this and other projects are likely to stop interest rate payments contrary to the company’s previous stance.

Last week, state-owned NHIDCL has terminated the contract awarded to troubled IL&FS group for building the strategic Zojila tunnel to provide all-weather connectivity between Srinagar, Kargil and Leh.

IL&FS Transportation in a filing said the contract was terminated on January 15.

IL&FS group has defaulted on debt repayments due to financial mismanagement. The total debt of the group was pegged at Rs 94,215.6 crore as of October 8. The government in October superseded the board of IL&FS and appointed new members to rescue the group.

Davos 2019: IMF’s Gita Gopinath bats for cash transfers, says farm loan waivers won’t solve problems permanently

Populist measures such as farm loan waivers will not solve the problems faced by farmers permanently, but cash transfers are a better solution, said IMF chief economist Gita Gopinath.

“There is a tremendous amount of distress in the agricultural sector and I believe that farm loan waivers don’t solve the problem on any kind of permanent basis. We certainly need to need to work with our farmers by giving them better technology, better seeds,” Gopinath told CNBC-TV18 on the sidelines of the World Economic Forum in Davos.

A cash transfer would be absolutely better than loan waivers and It would be more broad-based and would keep the incentives aligned, Gopinath said.

In a bid to appease farmers before the Lok Sabha election and address the farm distress, many state governments have announced farm loan waivers.

On India’s economic growth, Gopinath said, “Indian growth is high. We still say that it is the highest growth rate for a large economy, so that is a big positive.”

The other positive is actually the forecast growth going up in 2019 because of two factors – the lower commodity prices, and a more accommodative monetary policy, she said.

“However, going forward the big challenges for the Indian economy would be job creation and reforms for the agricultural sector,” Gopinath added.

International Monetary Fund on Monday projected that India will grow at 7.5 percent in 2019 and 7.7 percent in 2020, an impressive over one percentage point ahead of China’s estimated growth of 6.2 percent in these two years.

Niine Sanitary Napkins launches period tracker app

Find it hard to keep track of your menstruation cycle?

Here’s an app to your rescue. Sanitary napkins brand Niine has developed a period tracker app.

It is developed in consultation with medical professionals. The app has been launched in collaboration with FOGSI (Federation of Obstetric and Gynaecological Societies of India).

It is available on Google Playstore and iOS and works in English as well as Hindi.

Here are some features of the app.

It has polls, faqs and blog sections to help deal with period cramps and period myths. The calendar also marks ovulation dates and fertile dates to help you plan your pregnancy or avoid pregnancy scares.

The app allows users to maintain a daily log on menstrual flow, mood and pain.

It will send you reminders for instance to stock up your pads, period start date etc. The app also comes with a tutorial section.

Still under denial, Indian IT industry faces a dull FY20, finds survey

The FY20 will be a dull year for the Indian information technology industry as it’s in denial of challenges and not accepting inability to compete in the sector, a survey said on Monday.

The Budget Time Survey Insights exclusively accessed by CNBC-TV18 said global economic pressure and lull in the market is making 48 percent of global 2000 companies to keep their budget flat and nearly 30 percent firms to reduce their IT budget.

Up to 58 percent of companies participated in the survey said they will wait and watch, and invest conservatively on any new business initiatives in the current calendar year as geopolitical pressures, especially trade war kick in uncertainty on large programmes and new investments.

Further, overwhelming majority of companies put renewed focus on cost cutting after spending decent in the last couple of years.

According to the survey, tech spend (gross) dropped to 2.9-3 percent from more than 3.8 percent in 2018. The infrastructure spending on data centre/IT will remain flat and high possibility of backend system market shrinking by up to 5 percent.

Coming to software growth, the survey said it will narrow from whooping double digit (10-10.5 percent in 2018) to modest range of 7.5-8 percent and IT services (overall) growth too will reduce from 5.5 percent plus pace of growth to about 4 percent.

However, 2019 will be a year when cloud spend will exceed first time spend on non-cloud investments and purchases.

The survey said offshore penetration would stay muted by 33-34 percent. In lower estimates, it may even reverse to below 32 percent (currently it is at 33 percent). The Offshore Insights predicts that IT services (export) growth will be between 7.5 percent to 8 percent in current fiscal (FY18-19).

The survey also predicted that IT services growth (export) will be flattish in best case or reduce slightly most probably in next year (FY2019-20) and will be in range of 6 percent to 8 percent.

The protection of business profitability is a core concern of 62 percent of client companies and 18 percent ranked it as secondary, the survey said.

Better synergy and collaboration between business functions for higher operations efficiency was top priority of 54 percent of IT heads and 20 percent listed these areas in top three tech goals for their companies.

Top objective of new IT investments and new projects are innovating client engagement model and preparing to better compete against incumbent as well as new entrant. Up to 70 percent of clients listed new projects as number two IT goal in the survey.

With 80 percent of companies mentioning cost cutting as the top priority, ensuring speed of implementation (40 percent) and adopting change in business process or model (36 percent), were other top IT objectives, survey said.

Right skilling, nearshore and closer to client delivery locations are top two investment areas for the vendor companies.

The Budget Time Survey Insights covered 408 interviews of IT and business decision makers across North America (185), Europe (123) and Asia Pacific (90).

12 large state failed on jobs, despite faster growth: Crisil

Even as 12 large states grew faster than national GDP in FY18, the same has not translated into job creation, as GSDP expansion has come in from sectors
which are less job-intensive, says a report.

The Crisil report comes in the immediate backdrop of a report by the independent think-tank Centre for Monitoring Indian Economy which said as many as 1.1 crore jobs were lost in 2018 alone.

“Growth has not quite been conducive to job creation in a majority of the states,” Crisil said on Monday.

It said 11 states have recorded lower growth in employment-intensive sectors such as manufacturing, construction and trade, and hotels, transport and
communication services, compared with the national rate.

In Gujarat, Bihar and Haryana, growth could have been more employment generating sectors have grown the fastest, it said, adding Rajasthan, Jharkhand and MP recorded the lowest growth. No wonder of these the first and the last states voted the incumbent BJP governments in the December elections.

The report said 12 states grew faster than nation last fiscal. The growth has not been equitable, it said, pointing out that the chasm on per capital income between low-income states and high income states has only widened.

Most states were found to have veered off the targets under the fiscal responsibility and budget management act, the report said, adding because of the pressure on fiscal deficit for the Centre, the states have become the engines of government spending, accounting for a bulk 65 percent of the
total money spent.

Rajasthan, Jharkhand and UP topped the tally in proportion of capex in state spending in the past three years, it said. However, critical areas including health, irrigation and education did not get as much attention on spending as it ought to have been, it added.

Going by the three crucial factors of inflation, growth and fiscal deficit, Gujarat and Karnataka remained among top three performing states, it said, adding Kerala and Punjab stayed stuck in the bottom three.