India’s growth may slip below 3% in FY21 if coronavirus proliferates: KPMG

India’s growth could slip below 3 per cent in the current fiscal if COVID-19 proliferates within India, lockdown extended and global economy slips into recession, a report said.

It said the three major contributors to GDP — private consumption, investment and external trade — will all get affected due to the spread of the pandemic.

The report presented three scenarios to explain the economic effects of COVID–19. In the scenario of quick retraction across globe by April-end to mid-May, the report said “India’s growth for 2020-21 may be in the range of 5.3 to 5.7 per cent, though this scenario looks distant at this moment”.

In the second scenario where India is able to control COVID-19 spread, but there is a significant global recession, the report said India’s growth is expected to be in the range of 4-4.5 per cent.

However if the pandemic proliferates and there is global recession then it would be a double whammy for the economy as it will have to bear the brunt of both domestic and global demand destruction, said.

“Prolonged lockdowns would exacerbate

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Coronavirus impact: Hiring of IT graduates by firms likely to be delayed

Hiring of fresh engineering graduates from college campuses by information technology (IT) services is likely to be delayed owing to uncertainties arising out of global spread of (Covid-19). IT firms are expected to absorb these freshers in a staggered manner. Sources in the know said the chances of dishonouring joining letters seem remote at this point in time.

Since most IT firms anticipate a demand slowdown in the coming quarters, hiring from tier-III and IV through walk-in interviews is going take a massive hit in 2020, said industry experts.

“Freshers, slated to join in May-June, are likely to be scheduled for onboarding in August-September. Some IT firms are likely to defer their joining, based on the developments in the US, the UK, and Continental Europe,” said Aditya Narayan Mishra, director & chief executive officer at CIEL HR Services. In a worst-case scenario, only 5 per cent of offer letters may not be honoured, he said.

Anticipating demand, the top four IT firms of India added more than 50,000 freshers last year. Hiring of fresh graduates is also part of the initiative of most IT firms

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How crowdfunding is heralding in an era of ‘New Power’ in business

Crowdfunding is having a profound effect on business. So much so that I believe that by 2030 all good ideas will be incubated through crowdfunding.

Why? Because crowds, i.e. the opinion of the market, is deemed more trustworthy than the voice of a few opinionated industry leaders; pluralism is overtaking individualism. John Auckland from Tribefirst explains that there will be a time in the near future where ideas or new brands won’t be trusted if they can’t show they’ve been validated by the crowd.

I’m not the only one who believes this paradigm shift will be absolute. In their recently-published book, called New Power, authors Henry Timms and Jeremy Heimans argue that we’re shunning old 20th Century values in favour of new power values of disintermediation, leader-less movements and crowdsourced ideas. In this world our voices are heard through online petitions, our banks are crowdsourced and our beer is owned by the people. It also has its dark side, leading to populist politics that can be open to manipulation, such as Donald Trump, Brexit and the Cambridge Analytica scandal.

So how will this affect the startup and funding scenes, and will this help to drive the industry forward? And how

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