The Executive Recruiters Association (ERA) is a non-profit Chamber of Commerce representing Executive Recruitment Consulting firms, across the country. Executive Recruitment is a specialized profession that helps client organizations identify, evaluate, and recruit executives at various levels. They say all the time - It is the people behind, who make or break a Corporate.

ERA strongly urges the Government to favorably consider the following points:

1. India should take the lead in introducing the "GATS Visa", which will facilitate cross-country movement of professionals.

2. The Government should expeditiously incorporate the promised Manpower Export Promotion Council, with adequate representation from Industry Bodies like ERA.

3. The SEBI Committee on Corporate Governance has made a mandatory recommendation about appointment of Independent Directors. It states "The non-executive directors help bring an independent judgement to bear on board's deliberations especially on issues of strategy, performance, management of conflicts and standards of conduct. The Committee therefore lays emphasis on the caliber of the non-executive directors, especially of the independent directors." To ensure genuine transparency, protection of shareholder interests and to help listed companies locate professionally acclaimed independent directors for their board, the use of a Professional Executive Recruitment Consultancy organization should be made mandatory for the selection of Independent Directors.

4. The Recruitment industry helps to generate among the highest net invisible FOREX inflow on a continuing and a sustainable basis. The recruitment industry must be treated on par with the software & IT Enabled services, since in each of the above case, export earnings are being created through deployment of knowledge workers. Export earnings for the recruitment industry must also be covered under 80HHE of Income Tax Act.

5. The labor laws for contract employment need to be liberalized to enable increased employment. The largest private employer in US is a Temporary Employment company, employing around 2 million temporary workers. India's unemployment can be reduced by allowing liberalized contract / temporary employment for knowledge workers.

6. The seeds for the growth of Software Exports were provided by "onsite body-shopping", which helped customers recognize strengths of the Indian software professional. Recruitment Companies have contributed significantly to it. ERA will help build the Global Brand & Recognition for Indian knowledge workers from other professions - Engineers, Accountants, Medical, Marketing, Human Resources, Media, etc. ERA can be the catalyst to replicate the software exports success to other professions for outsourced knowledge & R&D centers, helping create employment, significant exports and FOREX earnings.

7. The implications of the increase in Service Tax, chargeable at 10.2 % (incl. of 2 % Education Cess) can have a debilitating effect in general and more so to the "flexi - staffing" concept, which has a significant "job - creating potential". In today's Corporate World, the one permanent feature is the constant change. Consequently Corporates are going in for flexi staffing, whereby if in a venture their efforts are not yielding the desired results they disband the team, without too much of a financial backlash. Your avowed policy is to give the much-needed fillip to employment generation. Does this increased tax not go against the avowed objectives?

K Pandiarajan, ERA Chairman - Tel : 044 - 28206595 / 96 / 97 email:

Satish Doshi, Founder Chairman ERA - Tel : 022 - 28206000 / 28202200 email:

B.R.Muralidharan - Executive Director - ERA ; Tel : 022 - 55910891; e-mail :

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