1 00:00:02,720 --> 00:00:07,920 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,480 --> 00:00:13,880 Speaker 2: If you see the job openings, it's for a senior role, 3 00:00:14,080 --> 00:00:17,560 Speaker 2: a software engineering role in high level. 4 00:00:17,680 --> 00:00:18,000 Speaker 1: Yeah. 5 00:00:18,040 --> 00:00:21,800 Speaker 2: If you scroll below, there is something related to audits 6 00:00:21,800 --> 00:00:22,799 Speaker 2: this technology. 7 00:00:23,000 --> 00:00:26,159 Speaker 1: Earlier this week, I went job hunting on LinkedIn with 8 00:00:26,280 --> 00:00:29,600 Speaker 1: side Nayak, Bloomberg finance reporter based in Mumbai. 9 00:00:30,040 --> 00:00:33,080 Speaker 2: You can also experiment with other firms like say a 10 00:00:33,159 --> 00:00:38,680 Speaker 2: Goldman Sachs. Goldman Sachs has an opening in Hyderabad for 11 00:00:38,840 --> 00:00:44,520 Speaker 2: Corporate Planning and Management Vice President Software Engineering in Hyderabad. 12 00:00:44,640 --> 00:00:47,600 Speaker 1: Now, I am not planning a career pivot or a 13 00:00:47,640 --> 00:00:50,160 Speaker 1: move from New York to New Delhi. We did this 14 00:00:50,320 --> 00:00:53,159 Speaker 1: so CIDI could show me that jobs in India's finance 15 00:00:53,159 --> 00:00:58,320 Speaker 1: sector are not what they used to be. City covers 16 00:00:58,360 --> 00:01:01,680 Speaker 1: the big Wall Street banks, JP, Morgan, Chase, Morgan, Stanley, 17 00:01:01,760 --> 00:01:04,640 Speaker 1: Goldman Sachs. For years, much of the coverage of the 18 00:01:04,640 --> 00:01:08,360 Speaker 1: global banking industry and its white collar employees was focused 19 00:01:08,400 --> 00:01:11,520 Speaker 1: on the US and Europe. But City and I weren't 20 00:01:11,560 --> 00:01:14,360 Speaker 1: looking for jobs in New York or Paris. We were 21 00:01:14,360 --> 00:01:17,640 Speaker 1: looking in India, where there is a hiring frenzy. 22 00:01:17,920 --> 00:01:20,800 Speaker 2: Wall Street banks don't have a big presence from the 23 00:01:20,840 --> 00:01:23,720 Speaker 2: retail site. But if you look at the corporate side 24 00:01:23,720 --> 00:01:26,800 Speaker 2: as well as the investment banking side and the wealth side, 25 00:01:26,840 --> 00:01:30,560 Speaker 2: basically they have a huge presence. This is your JP Morgan, 26 00:01:30,720 --> 00:01:34,160 Speaker 2: your Barclays, your HSBC, your Deutsche Bank. 27 00:01:34,880 --> 00:01:37,880 Speaker 1: City is on a team of Bloomberg reporters tracking Wall 28 00:01:37,880 --> 00:01:41,800 Speaker 1: Street's growing reliance on Indian hubs. This is a shift 29 00:01:41,800 --> 00:01:46,119 Speaker 1: that's accelerated as President Trump Titan's visa requirements and as 30 00:01:46,200 --> 00:01:50,320 Speaker 1: India's booming wealth management industry and private credit continue to grow. 31 00:01:50,760 --> 00:01:55,120 Speaker 2: JP Morgan Chase is hiring credit specialists in Mangalore. Goldman 32 00:01:55,200 --> 00:01:59,280 Speaker 2: Sachs is hiring analysts to review loans tight to everything 33 00:01:59,320 --> 00:02:05,080 Speaker 2: from commercial property to yachts. So what began as low skilled, 34 00:02:05,240 --> 00:02:09,440 Speaker 2: call centered jobs in India have now evolved into a 35 00:02:09,560 --> 00:02:14,880 Speaker 2: mission critical hub of global finance and technology. 36 00:02:21,280 --> 00:02:23,639 Speaker 1: This is the Big Take Asia from Bloomberg News. I'm 37 00:02:23,720 --> 00:02:26,640 Speaker 1: David Gura in for Wanha. Every week we take you 38 00:02:26,680 --> 00:02:29,880 Speaker 1: inside some of the world's biggest and most powerful economies 39 00:02:30,160 --> 00:02:33,600 Speaker 1: and the markets, tycoons and businesses that drive this ever 40 00:02:33,639 --> 00:02:37,320 Speaker 1: shifting region. Today on the show, Indian based workers once 41 00:02:37,360 --> 00:02:42,520 Speaker 1: supported American financial services firms now they're increasingly key to 42 00:02:42,600 --> 00:02:47,160 Speaker 1: their operations. How India's government is encouraging Wall Street firms 43 00:02:47,200 --> 00:02:50,440 Speaker 1: to expand their footprint in India, and how President Trump's 44 00:02:50,480 --> 00:03:00,960 Speaker 1: new visa policies could speed up the push. India has 45 00:03:01,040 --> 00:03:03,920 Speaker 1: been a tech hub for decades. In the late nineties 46 00:03:03,919 --> 00:03:07,440 Speaker 1: and early two thousands, the country saw a call center boom, 47 00:03:07,760 --> 00:03:12,120 Speaker 1: with multinational corporations like American Express, IBM and Goldman Sachs 48 00:03:12,400 --> 00:03:16,760 Speaker 1: setting up Global Capability Centers or gccs and staffing them 49 00:03:16,919 --> 00:03:19,960 Speaker 1: with Indian workers. The goal was to provide twenty four 50 00:03:19,960 --> 00:03:23,680 Speaker 1: to seven low cost operational support for customers in the US. 51 00:03:24,160 --> 00:03:25,680 Speaker 1: Here's Bloomberg City Nayak. 52 00:03:26,080 --> 00:03:30,200 Speaker 2: These firms operations in India were largely to address grievances 53 00:03:30,240 --> 00:03:34,760 Speaker 2: of customers or initiate sales through phone calls. So, for example, 54 00:03:34,840 --> 00:03:38,000 Speaker 2: if you're a client based in US and had grievances 55 00:03:38,080 --> 00:03:41,640 Speaker 2: related to insurance, the chances were that Indians had these 56 00:03:41,720 --> 00:03:45,280 Speaker 2: call centers would answer these calls and help address these concerns. 57 00:03:45,760 --> 00:03:49,400 Speaker 1: But that has changed dramatically over the last decade. Take 58 00:03:49,440 --> 00:03:52,119 Speaker 1: Goldman Sacks as an example. In two thousand and four, 59 00:03:52,360 --> 00:03:55,280 Speaker 1: its office in the southern city of Bangalore had three 60 00:03:55,360 --> 00:03:59,120 Speaker 1: hundred employees, most of whom focused on tech and IT support. 61 00:03:59,640 --> 00:04:02,160 Speaker 1: Today that same office is home to more than eight 62 00:04:02,240 --> 00:04:06,760 Speaker 1: thousand employees. Those workers do everything from core financial analysis 63 00:04:06,840 --> 00:04:09,400 Speaker 1: to risk management, the kind of jobs that used to 64 00:04:09,400 --> 00:04:10,840 Speaker 1: be done in US cities. 65 00:04:11,280 --> 00:04:15,240 Speaker 2: The perception that Indian gccs are providing call center jobs 66 00:04:15,280 --> 00:04:19,200 Speaker 2: is kind of changing. Gccs that are now offshow centers 67 00:04:19,360 --> 00:04:24,440 Speaker 2: established by these multinational cooperations or financial services firms now 68 00:04:24,520 --> 00:04:29,320 Speaker 2: deliver high quality, cost effective services and support their global operations. 69 00:04:29,720 --> 00:04:33,120 Speaker 2: Call center jobs are now being outsourced to other emerging 70 00:04:33,200 --> 00:04:38,520 Speaker 2: economies like Philippines. Property prices also are cheap because the 71 00:04:38,680 --> 00:04:41,760 Speaker 2: value of rupee is depreciating visa either dollar. 72 00:04:42,800 --> 00:04:45,480 Speaker 1: So it sounds like there is quite a boom here. 73 00:04:45,720 --> 00:04:46,680 Speaker 1: How far along are we? 74 00:04:47,680 --> 00:04:52,440 Speaker 2: Financial services firms? Banks have a significant employee base in India. 75 00:04:52,720 --> 00:04:56,719 Speaker 2: The top six US banks in India, that is JP, Morgan, 76 00:04:56,880 --> 00:05:01,320 Speaker 2: Bank of America, Goldman, Sachs City, etc. Employ about one 77 00:05:01,400 --> 00:05:04,799 Speaker 2: fifty thousand people in India. We know that Goldman, SAX 78 00:05:04,800 --> 00:05:08,160 Speaker 2: and Morgan Stanley have more staff in India than anywhere 79 00:05:08,400 --> 00:05:11,920 Speaker 2: outside the US. What we understand from sources is that 80 00:05:12,040 --> 00:05:17,080 Speaker 2: one European bank concluded that a catastrophe in India such 81 00:05:17,080 --> 00:05:20,919 Speaker 2: as an earthquake, would disrupt its activities more than a 82 00:05:20,920 --> 00:05:23,480 Speaker 2: similar disaster at its headquarters. 83 00:05:24,080 --> 00:05:25,480 Speaker 1: Is this going to be a bigger magnet? Do you 84 00:05:25,560 --> 00:05:27,000 Speaker 1: think in the years ahead it. 85 00:05:26,920 --> 00:05:28,640 Speaker 3: Is going to be a bigger magnet. 86 00:05:28,680 --> 00:05:33,799 Speaker 2: Because most of these colleges as well as tech centers 87 00:05:33,960 --> 00:05:37,840 Speaker 2: are churning out low cost talent on a large scale, 88 00:05:38,320 --> 00:05:42,279 Speaker 2: there will be more opportunities for formal and informal workers. 89 00:05:42,400 --> 00:05:46,640 Speaker 2: This is because there is no dearth of talent from 90 00:05:46,680 --> 00:05:49,839 Speaker 2: the tech side in India. There's always a lot of 91 00:05:49,920 --> 00:05:54,280 Speaker 2: graduates every year that get pulled up into these roles, 92 00:05:54,360 --> 00:05:58,800 Speaker 2: which is why we can see the boom expecting to 93 00:05:58,880 --> 00:06:02,159 Speaker 2: continue and most of these firms trying to leverage on 94 00:06:02,240 --> 00:06:04,040 Speaker 2: the talent that is built in India. 95 00:06:06,120 --> 00:06:09,080 Speaker 1: According to estimates from the National Association of Software and 96 00:06:09,120 --> 00:06:13,520 Speaker 1: Service Companies and consulting firm Zenov, employment at gccs in 97 00:06:13,520 --> 00:06:16,920 Speaker 1: India is projected to jump fifty percent to as many 98 00:06:16,920 --> 00:06:20,680 Speaker 1: as two point eight million people by twenty thirty. Cdesa's 99 00:06:20,720 --> 00:06:24,760 Speaker 1: employees at these gccs are breaking ground too. A source 100 00:06:24,760 --> 00:06:28,359 Speaker 1: told Bloomberg that Black Rocks a Laddin portfolio management platform 101 00:06:28,600 --> 00:06:32,200 Speaker 1: was developed in India, as was Goldman's Atlas trading system. 102 00:06:32,680 --> 00:06:35,960 Speaker 1: Then there's Zel, the popular payment app. It was developed 103 00:06:36,000 --> 00:06:39,880 Speaker 1: by Arizona based Early Warning Services, but Sidi's sources told 104 00:06:39,880 --> 00:06:43,159 Speaker 1: her that India played a crucial role behind the scenes. 105 00:06:43,520 --> 00:06:47,640 Speaker 2: We have information from our sources that the technology behind 106 00:06:47,880 --> 00:06:52,600 Speaker 2: running this zell app was entirely built out of India 107 00:06:52,640 --> 00:06:58,240 Speaker 2: through Bank of America, Goldman Sachs gccs in Bangalore and Hyderabad. 108 00:06:58,680 --> 00:07:03,600 Speaker 2: This was kind of inspired by the fintech revolution in India. 109 00:07:03,640 --> 00:07:07,800 Speaker 2: We have a UPI Unified Payment Interface system in India 110 00:07:07,839 --> 00:07:11,440 Speaker 2: where there is a bank to bank transfer of payment 111 00:07:11,520 --> 00:07:16,120 Speaker 2: systems using a QR code. So most of these inspirations 112 00:07:16,360 --> 00:07:20,520 Speaker 2: were kind of instrumental in making or building the Zell app. 113 00:07:20,960 --> 00:07:23,680 Speaker 1: Could you situate this in kind of the broader Indian economy? 114 00:07:23,680 --> 00:07:26,320 Speaker 1: How important it is that the growth of these gccs 115 00:07:26,840 --> 00:07:29,880 Speaker 1: the importance of Wall Street's interest in putting some of 116 00:07:29,920 --> 00:07:31,880 Speaker 1: these higher skill jobs in India. 117 00:07:32,040 --> 00:07:36,440 Speaker 2: So gccs are a vital component of the Wall Street 118 00:07:36,560 --> 00:07:40,680 Speaker 2: firm's global strategies as well as for India's economic growth. 119 00:07:41,000 --> 00:07:45,120 Speaker 2: They are fostering job creation, skill development, and foreign investment 120 00:07:45,160 --> 00:07:49,080 Speaker 2: in India that is in turn getting fed into India's 121 00:07:49,120 --> 00:07:52,880 Speaker 2: GDP growth. Their revenue is expected to search to one 122 00:07:52,960 --> 00:07:57,120 Speaker 2: hundred and five billion dollars from about forty point four 123 00:07:57,160 --> 00:08:01,120 Speaker 2: billion dollars in FY nineteen, according to na Scom and 124 00:08:01,360 --> 00:08:05,200 Speaker 2: Zenov estimates. So this is the kind of impact that 125 00:08:05,240 --> 00:08:07,920 Speaker 2: we are talking about. Their growth in India is not 126 00:08:08,360 --> 00:08:13,520 Speaker 2: just important for fueling economic growth, job creation, but also 127 00:08:13,640 --> 00:08:16,200 Speaker 2: to get a lot of foreign influ in terms of 128 00:08:16,240 --> 00:08:17,960 Speaker 2: foreign direct investments in India. 129 00:08:21,960 --> 00:08:25,320 Speaker 1: This year, US immigration policy through a ranch in India's 130 00:08:25,360 --> 00:08:29,000 Speaker 1: workforce overseas, but it also became a boon for their 131 00:08:29,000 --> 00:08:47,120 Speaker 1: domestic gccs. How that's after the break In late September, 132 00:08:47,320 --> 00:08:50,560 Speaker 1: President Trump announced it change to US immigration policy with 133 00:08:50,720 --> 00:08:53,800 Speaker 1: a big price tag, a one hundred thousand dollars fee 134 00:08:53,800 --> 00:08:55,520 Speaker 1: for an H one B visa application. 135 00:08:56,040 --> 00:08:58,840 Speaker 4: The country would rather not have to pay one hundred 136 00:08:58,880 --> 00:09:02,679 Speaker 4: thousand dollars, but rather, how do you do that? You 137 00:09:02,800 --> 00:09:05,040 Speaker 4: hire America, So there's an incentive to hire. 138 00:09:05,200 --> 00:09:07,800 Speaker 1: The H one B is a non immigrant visa which 139 00:09:07,840 --> 00:09:11,960 Speaker 1: allows US employers to temporarily hire foreign workers in highly 140 00:09:12,000 --> 00:09:16,880 Speaker 1: skilled roles engineering, technology, medicine. When Trump made the announcement, 141 00:09:17,000 --> 00:09:21,600 Speaker 1: the US's financial sector found itself relatively unprepared, as Bloomberg 142 00:09:21,679 --> 00:09:22,959 Speaker 1: City nayak So. 143 00:09:23,040 --> 00:09:26,520 Speaker 2: Indians make up roughly seventy percent of H one B holders. 144 00:09:26,920 --> 00:09:30,800 Speaker 2: When Trump first announced one hundred thousand dollar visa fee, 145 00:09:31,400 --> 00:09:33,480 Speaker 2: it was seen as a big blow for Indians. 146 00:09:33,760 --> 00:09:35,560 Speaker 3: We had JP Morgan. 147 00:09:35,360 --> 00:09:40,160 Speaker 2: CEO Jamie Dimmons say that the announcement caught everybody off guard. 148 00:09:40,679 --> 00:09:44,600 Speaker 2: Apart from that, we had HSBC stating that the new 149 00:09:45,000 --> 00:09:48,160 Speaker 2: one hundred thousand, h one B dollar fee in the 150 00:09:48,280 --> 00:09:51,800 Speaker 2: US was manageable due to their relatively low number of 151 00:09:51,880 --> 00:09:54,079 Speaker 2: foreign workers compared to other firms. 152 00:09:54,520 --> 00:09:57,520 Speaker 1: JP Morgan, APAX CEO and head of Banking Short Leanard 153 00:09:57,640 --> 00:10:02,079 Speaker 1: joined Bloomberg TV's Menkadoshe shortly after Trump's announcement and expanded 154 00:10:02,160 --> 00:10:05,520 Speaker 1: on the company's disappointment that how this would impact India's 155 00:10:05,559 --> 00:10:06,439 Speaker 1: younger workforce. 156 00:10:06,679 --> 00:10:09,600 Speaker 3: So, will JP Morgan be moving more jobs to your 157 00:10:09,679 --> 00:10:10,760 Speaker 3: GCC here. 158 00:10:10,760 --> 00:10:13,640 Speaker 4: Yeah, well that's a very good question, and if it was, 159 00:10:13,679 --> 00:10:15,679 Speaker 4: it would be a shame because it obviously has been 160 00:10:15,679 --> 00:10:19,160 Speaker 4: a great source of opportunity for Indian students. You know, 161 00:10:19,200 --> 00:10:23,920 Speaker 4: India producer's two point eight million STEM students every year 162 00:10:24,040 --> 00:10:26,120 Speaker 4: and they've gone all over the world, including. 163 00:10:25,880 --> 00:10:28,560 Speaker 1: In a statement to Bloomberg. A White House spokeswoman said 164 00:10:28,640 --> 00:10:31,680 Speaker 1: changes to the H one B visa program were necessary 165 00:10:31,920 --> 00:10:35,200 Speaker 1: to put America first. She said the bank's efforts to 166 00:10:35,280 --> 00:10:38,640 Speaker 1: move jobs overseas is quote evidence that they were using 167 00:10:38,679 --> 00:10:43,040 Speaker 1: foreign workers to undercut Americans wages. Though it is a change, 168 00:10:43,120 --> 00:10:45,319 Speaker 1: it's not like the rug had gotten pulled down from 169 00:10:45,400 --> 00:10:49,240 Speaker 1: under India's financial industry City says the Indian economy was 170 00:10:49,280 --> 00:10:52,280 Speaker 1: expanding and the upper class was growing in this. 171 00:10:52,480 --> 00:10:54,120 Speaker 3: In the middle of a wealth broom. 172 00:10:54,760 --> 00:10:59,599 Speaker 2: The boom had already started post COVID, and Trump's announcement 173 00:10:59,679 --> 00:11:03,240 Speaker 2: of the visa fee kind of gotten in for these firms, 174 00:11:03,280 --> 00:11:07,320 Speaker 2: like an incentive to hire more talent inward. Banks that 175 00:11:07,520 --> 00:11:11,200 Speaker 2: might consider transferring a worker to the US may now 176 00:11:11,280 --> 00:11:13,800 Speaker 2: be opened to hire them in India itself. 177 00:11:16,040 --> 00:11:18,400 Speaker 1: An H one B visa used to cost on average, 178 00:11:18,440 --> 00:11:21,760 Speaker 1: around five thousand dollars. JP Morgan is among the top 179 00:11:21,800 --> 00:11:24,600 Speaker 1: ten companies in the US that sponsors the most H 180 00:11:24,679 --> 00:11:27,720 Speaker 1: one B visas. City says the new visa fee has 181 00:11:27,760 --> 00:11:29,680 Speaker 1: sparked some chatter among the banks. 182 00:11:30,160 --> 00:11:34,120 Speaker 2: Some of the Wall Street banks in India were looking 183 00:11:34,200 --> 00:11:37,560 Speaker 2: to talk to their counterparts in the US to talk 184 00:11:37,600 --> 00:11:41,760 Speaker 2: to them about opening more roles in India specialist roles 185 00:11:41,760 --> 00:11:45,640 Speaker 2: in India to kind of not be impacted by the 186 00:11:46,040 --> 00:11:48,240 Speaker 2: higher he B dollar fee. 187 00:11:48,520 --> 00:11:51,600 Speaker 1: Then there's the math involved in hiring people in India 188 00:11:51,679 --> 00:11:53,040 Speaker 1: versus in a US city. 189 00:11:53,679 --> 00:11:58,240 Speaker 2: Firms know that the salary of an Indian tech engineer 190 00:11:58,480 --> 00:12:02,240 Speaker 2: is much less than what it is in the US 191 00:12:02,280 --> 00:12:06,000 Speaker 2: for an entry level role at a US bank's GCC, 192 00:12:06,240 --> 00:12:11,000 Speaker 2: and engineering graduate in India could earn anything between say 193 00:12:11,520 --> 00:12:14,440 Speaker 2: three hundred thousand rupees to eight hundred thousand rupees a 194 00:12:14,520 --> 00:12:16,400 Speaker 2: year depending on the location. 195 00:12:18,080 --> 00:12:21,200 Speaker 1: That's between four and ten thousand dollars per employee. 196 00:12:21,760 --> 00:12:25,680 Speaker 2: That compass with a sixty thousand dollars annual fee for 197 00:12:25,800 --> 00:12:28,600 Speaker 2: an Indian on a US visa and up to one 198 00:12:28,720 --> 00:12:31,840 Speaker 2: twenty thousand dollars for a US citizen in the same role. 199 00:12:32,200 --> 00:12:34,880 Speaker 1: So he says, these calculations are driving banks to think 200 00:12:34,920 --> 00:12:38,320 Speaker 1: differently about the way they balance staffing in their offices 201 00:12:38,320 --> 00:12:40,200 Speaker 1: in the US and in India. 202 00:12:40,280 --> 00:12:44,600 Speaker 2: This has actually accelerated the pivot to India Wall Street 203 00:12:44,720 --> 00:12:48,360 Speaker 2: banks for hiring anyway, this fee is just a push 204 00:12:48,840 --> 00:12:53,640 Speaker 2: potentially bringing more jobs to India. So recruitment firms have 205 00:12:53,800 --> 00:12:56,760 Speaker 2: told us that with the new fee, workers have started 206 00:12:56,760 --> 00:13:00,000 Speaker 2: to question if a US job is a priority for 207 00:13:00,120 --> 00:13:02,839 Speaker 2: or most of the employees, as well as the employers. 208 00:13:03,240 --> 00:13:06,920 Speaker 2: Firms have also realized that this is not going to 209 00:13:06,960 --> 00:13:10,560 Speaker 2: be cost effective and India, which was already seeing a 210 00:13:10,640 --> 00:13:13,520 Speaker 2: GCC boom, would now benefit from this. 211 00:13:14,920 --> 00:13:18,120 Speaker 1: Trump said the higher H ONEB VISA application fee is 212 00:13:18,160 --> 00:13:21,320 Speaker 1: to address quote abuse of the program and to compel 213 00:13:21,440 --> 00:13:25,560 Speaker 1: US companies to hire Americans, but cities reporting shows it 214 00:13:25,600 --> 00:13:28,160 Speaker 1: could backfire and hurt the US instead. 215 00:13:28,720 --> 00:13:32,319 Speaker 2: Senior executives from at least two US banks in India 216 00:13:32,360 --> 00:13:35,880 Speaker 2: are in talks to consider ways to ramp up their 217 00:13:36,040 --> 00:13:39,760 Speaker 2: global capability centers in India. This is in response to 218 00:13:39,800 --> 00:13:43,959 Speaker 2: the H ONEB VISA crackdown. According to sources, some global 219 00:13:44,040 --> 00:13:47,520 Speaker 2: lenders that had extended offer letters for positions in the 220 00:13:47,679 --> 00:13:51,040 Speaker 2: US are also looking to either revoke them or create 221 00:13:51,200 --> 00:13:53,559 Speaker 2: alternative roles at these gccs. 222 00:13:53,960 --> 00:13:56,880 Speaker 1: That's bad news for the US job market potentially, but 223 00:13:57,120 --> 00:13:59,360 Speaker 1: it could be great news for India. 224 00:13:59,480 --> 00:14:03,280 Speaker 2: If these jobs are coming to India, it is a 225 00:14:03,320 --> 00:14:07,960 Speaker 2: boom for the job market. A tech engineer or a 226 00:14:08,000 --> 00:14:12,160 Speaker 2: tech specialist who has just graduated has more options on 227 00:14:12,200 --> 00:14:16,160 Speaker 2: the table. He has the option of getting into a 228 00:14:16,240 --> 00:14:20,560 Speaker 2: startup a GCC of fintech firms. The role is being 229 00:14:20,640 --> 00:14:24,200 Speaker 2: elevated in the sense that he has to do more 230 00:14:24,400 --> 00:14:31,920 Speaker 2: jobs that involve research, legal development, specializing, getting into certain 231 00:14:32,000 --> 00:14:36,160 Speaker 2: spaces that only high skill talent can tap into. That 232 00:14:36,360 --> 00:14:40,160 Speaker 2: is the kind of opportunity boom in gccs has provided 233 00:14:40,200 --> 00:14:44,600 Speaker 2: the tech talent. At the same time, if these firms 234 00:14:44,680 --> 00:14:49,440 Speaker 2: are getting huge real estate spaces in India, they do 235 00:14:49,600 --> 00:14:53,400 Speaker 2: require informal jobs as well, and that's kind of being 236 00:14:53,440 --> 00:14:57,000 Speaker 2: a boon for the entire Indian job market. 237 00:15:00,040 --> 00:15:02,480 Speaker 1: So the says the government has seen an opportunity and 238 00:15:02,640 --> 00:15:05,120 Speaker 1: is working on a set of policies to incentivize the 239 00:15:05,160 --> 00:15:09,400 Speaker 1: financial sector designed to help the GCC ecosystem thrive. 240 00:15:10,080 --> 00:15:14,640 Speaker 2: India announces its federal budget on the first of February 241 00:15:14,960 --> 00:15:19,320 Speaker 2: every year. This is kind of a broad layout that 242 00:15:19,440 --> 00:15:25,720 Speaker 2: the government has on revenues, taxations, incentives, etc. From our sources, 243 00:15:25,760 --> 00:15:29,600 Speaker 2: we have found out that there is a GCC policy 244 00:15:30,480 --> 00:15:33,600 Speaker 2: framework that's going to be in the making so that 245 00:15:33,960 --> 00:15:38,760 Speaker 2: more US firms or more foreign firms are encouraged and 246 00:15:38,920 --> 00:15:44,760 Speaker 2: incentivized to build more GCC hubs here. These banks employ 247 00:15:45,000 --> 00:15:49,720 Speaker 2: a huge workforce in India. Foreign firms bring in a 248 00:15:49,760 --> 00:15:53,800 Speaker 2: lot of capital for the long term. These are strategic 249 00:15:53,960 --> 00:15:58,600 Speaker 2: investments made for a fifteen to twenty year horizon, which 250 00:15:58,640 --> 00:16:03,000 Speaker 2: is why the government wants to incentivize these firms to 251 00:16:03,120 --> 00:16:07,960 Speaker 2: build more operations in India, set up more offices, employ 252 00:16:08,160 --> 00:16:12,200 Speaker 2: more workers, and kind of steer the job market. 253 00:16:15,120 --> 00:16:17,280 Speaker 1: So they says, it'll be a while before we see 254 00:16:17,320 --> 00:16:19,960 Speaker 1: how this pans out in India and in the US. 255 00:16:20,280 --> 00:16:24,520 Speaker 1: As banks recalibrate their global hiring strategies. One thing banks 256 00:16:24,520 --> 00:16:27,080 Speaker 1: are watching and something that's holding them back from expanding 257 00:16:27,160 --> 00:16:30,280 Speaker 1: too aggressively is how Trump could retaliate. 258 00:16:30,480 --> 00:16:32,960 Speaker 2: So US firms are walking a fine line as then 259 00:16:33,000 --> 00:16:36,800 Speaker 2: look to shift more of these roles to India. There 260 00:16:36,840 --> 00:16:40,160 Speaker 2: is a risk that there could be a backlash from 261 00:16:40,200 --> 00:16:42,560 Speaker 2: Trump and Trump could. 262 00:16:42,360 --> 00:16:44,440 Speaker 3: Now target GCC's next. 263 00:16:44,960 --> 00:16:49,240 Speaker 2: It could bring GCC's in Trump's crosshairs. When we spoke 264 00:16:49,320 --> 00:16:53,880 Speaker 2: to our sources, we found that these banks were considering 265 00:16:54,680 --> 00:17:00,600 Speaker 2: Trump's imposition of tariffs or sanctions on GCC sees as 266 00:17:00,640 --> 00:17:04,600 Speaker 2: a major risk to their operations. They said that most 267 00:17:04,640 --> 00:17:08,560 Speaker 2: of these banks and their US headquarters were talking to 268 00:17:08,720 --> 00:17:12,160 Speaker 2: Trump about the issues and the fact that they were 269 00:17:12,320 --> 00:17:17,119 Speaker 2: hiring a lot of people in India, so any impact 270 00:17:17,400 --> 00:17:21,400 Speaker 2: of the government's orders would directly be felt on these. 271 00:17:21,240 --> 00:17:22,800 Speaker 3: Banks operations as well. 272 00:17:23,280 --> 00:17:30,920 Speaker 2: But that is a story for another day. 273 00:17:33,080 --> 00:17:35,320 Speaker 1: This is The Big Take Asia from Bloomberg News. I'm 274 00:17:35,359 --> 00:17:37,439 Speaker 1: David Gera. To get more from The Big Take and 275 00:17:37,520 --> 00:17:40,640 Speaker 1: unlimited access to all of Bloomberg dot com, subscribe today 276 00:17:40,680 --> 00:17:44,000 Speaker 1: at Bloomberg dot com slash podcast Offer. If you liked 277 00:17:44,000 --> 00:17:46,160 Speaker 1: the episode, make sure to subscribe and review The Big 278 00:17:46,200 --> 00:17:48,760 Speaker 1: Take Asia wherever you listen to podcasts. It helps people 279 00:17:48,760 --> 00:17:51,360 Speaker 1: find the show. Thanks for listening, See you next time.