By Shujaath Ahmed Khan.
"I am more than satisfied with my decision to come back
to India ", said Mr. Rashed. He had done his Engineering degree in IT in
the hope of getting a decent job in Gulf countries. Inspite of IT boom in India
he had opted to come to Saudi Arabia in 2005. Not happy with the environment
and realizing the stunted growth opportunities in this market, he immediately
returned back, disappointing his family members. His salary in Saudi Arabia was
SR. 6,000 p.m. and when he got back to India he got little less than this i.e.,
Rs. 65,000. After two years his salary has reached more than Rs.100,000/- per
month. Where as the incomes of his colleagues in Saudi Arabia has hardly
increased by 12% in Riyal terms. Had he stayed his Salary would have been SR.
6,600 (Rs.71,000). In India he was offered loan by one of the local banks and
is a proud owner of a luxury flat at one of the prestigious locations, with an
annual appreciation of 25%.
According to the 7th annual Asia-Pacific Salary increase in
2007, survey by Hewitt Associate, the increase would be in the range of 12.3%
to 15%. Salary hike will be maximum in India among the Asian countries. Another
survey carried out by the Dubai based GulfTalent.com reveals that at-least six
percent foreign nationals living in Gulf will leave and return to their home
countries for growing employment opportunities especially in countries like
India .
Indians form the second largest expat community in this
country. Many Indian have made good savings and enhanced their status within
their communities. This generated many prospects, who are eager to work in the
Kingdom and reach the levels of their predecessors. The recent incident of an
agent duping gullible people of their hard earned money to a tune of rupees
three million in Hyderabad , speaks of volumes about the dreams many youths
still harbour about working in this region without realizing the hard facts.
The average Indian is finding it extremely difficult to
sustain the attractiveness of the Gulf market. The cost of mutton (lamb’s meat)
has increased from SR. 20 to SR.26 in retail market and from SR. 14 to SR. 20
in the wholesale market. The price of rice, which is a staple food of Indian’s
has risen from SR. 25 per 10 Kg to SR. 32 per Kg. in the wholesale market. The
rates of Basmati rice used for Biryani’s(popular dish) has increased from SR.
34 to SR. 42 in the whole sale market. Similarly there is a rise of on an
average 10 – 15% in the rates of atta, chicken and pulses. Where the rates have
not risen on close observation we can find the shrinkage in the volume or size
of the products on an average 10-15%. The transportation cost of School bus is
increased from SR. 100 to SR. 135 an increase in 35%. Banana, commonly known as
common-man fruit was sold at SR. 2 per Kg. is now being sold at SR. 4 per Kg.
On the whole there is an average increase in cost of around 25% to 30%.
On the other side of the fence booming Indian market is
offering immense opportunities never seen before with the rising of property
rates and influx of foreign investments especially in the all the major cities
and surrounding areas. The wages are linked to the Consumer Price
Index/Inflation due to which there is always a growth in terms of actual
earnings. Because of higher cost of living in Saudi and better opportunities at
home, some of the Indians are returning to their home countries for good and to
start new career. Some have sent their families 2-3 years ahead of schedule.
There are also instances when the persons selected by Saudi firms got offers of
better packages within India , thereby making them to pursue their careers
within India .
Inspite of the double rate of inflation the cost of living
in India is less than half of that of Saudi Arabia . If we analyse the rents in
a city other that metro's a two bedroom flat is available for rent at SR. 500
per month compared to SR. 1,000 in Saudi Arabia . Locally produced vegetables
and fruits are available at 1/8th to 1/4th of the cost available in Saudi.
Mutton is SR. 16 per Kg, Chicken SR. 5 per piece. Pulses, milk, rice and
transportation are available at less than half the rate compared to Saudi Arabia
. School fee is less by almost 60-70%. Cost of banana is less than SR. 1 per
Kg. In terms of expenses a person can save at-least 50-60% on monthly expenses.
The conversion rate of Riyal to Rupee has reduced from
0.0802 in middle of 2006 to the current 0.0932 in September, 2007. This
reduction in rates have reduced the earnings of Indians by 15%. If we analyse a
person earning SR. 5,000 and making a saving of SR. 2,500 prior to mid 2006, he
is able to save between SR.250-500 and is inching towards hand to mouth
existence. On a similar salary back in India , the same person will be able to
increase his savings by at-least by 200-400%.
In the coming days dollar may come under further pressure
and inflation is going to be sustained. The salary levels in India will go on
increasing. This will give the Expats here an opportunity to ponder over their
future plans, think of starting their careers and businesses back in India .
It is high time that the employers here take a serious look
into this to avoid the draining of the talent pool present here and getting the
right talent from India by offering right salaries. Consideration should be
given to the erosion of dollar, inflation and situation in the home countries
in bringing the salaries to right levels.
Tail Piece: (email in circulation)
Philosophy:
Alexander at his death bed said, "My last wish is that
both my hands be kept dangling out of my coffin - I wish people to know that I
came empty handed into this world and empty handed I go out of this
world."
Reality:
Recent news headlines in Saudi, Dubai & Doha - Rent
increase, prices increase, water & electricity increases, school fees
increase, more parking fees, Road Toll etc. It all proves the old philosophy:
We came to the gulf empty handed, and would go back empty handed as well!!
Shujaath Ahmed Khan can be contacted at
shujaathahmed@yahoo.co.in
No comments:
Post a Comment