The Impact of Top Indian Businessmen on Employment: A Comprehensive Analysis

Understanding the contribution of the top 100 businessmen in India to job creation is a critical aspect of evaluating the socio-economic impact of these influential figures. Often, criticisms abound over their focus on profit maximization, but the reality is more nuanced. This article delves into the extent to which these individuals have impacted employment, particularly through middle management roles. We will also explore the role of public sector undertakings (PSUs) and the fluctuation in employment due to recent global events.

Employment Generation by the Top 100 Indian Businessmen

It is widely doubted that the top 100 businessmen in India significantly support a large number of families through their business operations. One of the primary objectives of their enterprises is to maximize profits, which often requires minimizing manpower. However, the specific number of families these individuals support can be a matter of speculation due to the complexity and confidentiality of such information.

Revenue per employee, an important performance metric, is not easily accessible to the public. While this data is closely monitored in the tech sector, particularly in organizations like Wipro and Infosys, much of this information has not been readily available in recent years. To estimate employment generation, one could look at the number of employees in the companies included in the SP BSE Sensex.

The Current Landscape of Employment in India

According to recent data, the Indian government and its PSU entities directly or indirectly support 46.7% of the workforce. This leaves a significant portion that is supported by private businesses. In the middle management segment, the following companies have made significant contributions:

Alexa India Paytm India Mahindra (excluding Club Mahindra and Tech Mahindra) Tata (excluding TCS) Infosys Wipro Deloitte ICICI Bank Axiz Bank HDFC Bank

Together, these companies account for approximately 35.7% of the middle management workforce in India. Notably, even after layoffs, several of these companies have continued to generate significant employment.

Job Reductions and Their Impact

While some companies have managed to maintain their workforce, others have had to cut significantly. Here's a closer look at the job reduction trends:

Alexa India has reduced its workforce by 7.82% from March 1, 2020, to August 1, 2020. The worst performers in terms of job reduction for middle management roles are Zomato, Oxygen Wallet (which is near destitute), Swiggy, OLA, and Uber India. These companies have seen a staggering 70.6% reduction in their workforce during the same period, contributing to a significant portion of the unemployed workforce.

Among foreign banks, Citibank has reduced its auxiliary workforce by 58% from March 1, 2020, to August 1, 2020. PVR and Inox, while experiencing complete workforce reductions, are omitted from this analysis due to government policies regarding theater chains and movie releases.

Conclusion and Future Outlook

The initiatives of top Indian businessmen, along with the role of PSUs, have played a substantial role in the employment landscape of the country. However, fluctuations in workforce due to economic and global conditions have also been observed. This analysis highlights the mixed impact of these enterprises on job generation and serves as a valuable reference for understanding employment trends in India.

For the most up-to-date and detailed insights, refer to the article in The Economist titled India's Precarious Position, written by Swapna Dasgupta and Swapan Dasgupta in 2020.