The 7th Pay Commission is likely to raise the salaries of government employees by up to 40 per cent, said Neelkanth Mishra, India equity strategist of Credit Suisse. The Pay Commission will submit its recommendations in October and it will be implemented by next year.
"As the Pay Commission numbers come through there could be a 30-40 per cent increase for each individual. It won't be as big as last time because it was driven by a lot of arrears but definitely a large number of government employees will come into the pay bracket which can afford to have, for example, four-wheelers," he said in an interview with NDTV. (Watch the full interview)
Credit Suisse says about one-third of India's middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.
"In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again," Mr Mishra said.
Once the Pay Commission submits its recommendations in October, it will take 3-6 months for the Centre and the states to announce its implementation, Credit Suisse said.
Gujarat and Madhya Pradesh have already indicated that they are going to implement the 7th Pay Commission recommendations from January 1, 2016, he said.
As clarity emerges on the 7th Pay Commission, consumption will see an uptick and that could act as a stimulus to the economy, the brokerage said.
However, Mr Mishra struck a note of caution. "Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise." Expectations of rate cuts can get pushed out and some possible fiscal pressures can emerge, he warned.
Source: http://profit.ndtv.com/news/life-and-careers/article-7th-pay-commission-likely-to-hike-salaries-by-40-credit-suisse-1201386
FORMER PRESIDENT A P J ABDUL KALAM PASSES AWAY. A BIG SALUTE TO THE MISSILE MAN
News: Bharat Ratna APJ Abdul Kalam Passed Away: Former Indian President Bharat Ratna APJ Abdul Kalam (Avul Pakir Jainulabdeen Abdul Kalam) Passed Away today(27.07.2015). He was reportedly collapsed on stage while giving a lecture at the Indian Institute of Management in Shillong and immediately rushed to hospital. Doctors say he suffered from a cardiac arrest.
Dr Kalam was born in Rameswaram on October 15, 1931, to a boatman. He played a pivotal role in India's Pokhran-II nuclear test in 1998, the first since the test by India in 1974. He was known as Missile Man India for ensuring the success of Integrated Guided Missile Development Programme (IGMDP). For his achievements, he was awarded the Padma Bhushan, Padma Vibhushan and Bharat Ratna, and then he became the 11th President of India in 2002. He was THE BEST and the ONLY president of India who inspired youth. His life itself is a motivational lesson for the modern youth.
APJ Abdl Kalam : Timeline of Important Dates :
1931 : A.P.J. Abdul Kalam was born on 15th October.
1954: Graduated from Saint Joseph's College, Tiruchirappalli.
1955: Enrolled at the Madras Institute of Technology to study aerospace engineering.
1960: Joined Aeronautical Development Establishment of Defense Research and Development Organization (DRDO) as a chief scientist.
1969: Was transferred to the Indian Space Research Organization (ISRO).
1981 : Honored with Padma Bhushan
1990 : Honored with Padma Vibhushan
1992-1999: Served as the Chief Scientific Adviser to the Prime Minister and the Secretary of Defence Research and Development Organisation.
1997 : Honored with Bharat Ratna
1997 : Honored with Indira Gandhi Award for National Integration
2002-2007: Served as the 11th President of India.
2015 : Passed Away on 27th July.
Famous Books by Abdul Kalam :
Developments in Fluid Mechanics and Space Technology (1988)
India 2020: A Vision for the New Millennium (1998)
Wings of Fire: An Autobiography (1999)
Ignited Minds: Unleashing the Power Within India (2002)
The Luminous Sparks (2004)
Mission India (2005)
Inspiring Thoughts (2007)
Indomitable Spirit (2007)
Envisioning an Empowered Nation (2010)
You Are Born To Blossom: Take My Journey Beyond (2011)
Turning Points: A journey through challenges (2012)
Target 3 Billion (2011)
My Journey: Transforming Dreams into Actions (2013)
A Manifesto for Change: A Sequel to India 2020 (2014)
Transcendence My Spiritual Experiences with Pramukh Swamiji (2015)
HANDBOOK FOR INQUIRY OFFICERS AND DISCIPLINARY AUTHORITIES - 2013 ISSUED BY DOPT.
Click here to view the Handbook for Inquiry officers and disciplinary authorities 2013 issued by DOPT.
