Economy of Trichy as of Jan 2010 - a reality check

Please see my previous article about people in trichy and their classification based on salaries. That should tell about the different kinds of people in Trichy.

I have written a similar article in April of 2009 for Economy of Trichy - a reality check in 2009.

At any case - let us check the status now:

One major complaint in Trichy economy is there is no major manufacturing divisions started up. Anything started up recently are retail outlets, refined grocery outlets, service outlets of different companies, shops etc., which sell things, insurance, banking etc.,

Only when there are more than 70% manufacturing companies, then only there is a significant improvement in economy of Trichy. In fact, there is reduction in number of manufacturing companies. On those days, atleast Fenner was great. But there are countable ones - Fenner, TVS companies etc.,

Every individual who works thinks of a secondary income and gets the compulsion of starting off something by himself, while he does the day job. While this happens, they always end up doing only service stuff and they don't create anything.

It is always only a share of existing money in Trichy. Only when outside companies come into Trichy and invest and give employment opportunities to Trichy people then only we get the actual productivity of Trichy and improvement in economy of Trichy.

Anyway, overall - it is good for Trichy's entrepreneurs to grow with new thinking of starting something of their own.

There has to be big companies coming in and giving employment to 100s and 1000s of people in Trichy - then there would be some difference and impact in trichy economy. In fact, any government concentration is only on north and not in southern parts of tamil nadu. If they concentrate, then there would be significant contribution from Trichy and southern districts as well.

Different Categories of Trichy People by Salaries - Economy of Trichy

I was talking to some of my friends in Trichy and corporate personnel in Trichy for the status of Trichy. Based on those discussions and interviews, here is my inference for Trichy Economy and reality check of the same.

I am not an economist, but just writing my thoughts and putting together my ideas on paper.

Let me classify working people of Trichy in different categories based on their salary.

1) Labour people, who work hard in the bottom of the society and get Rs.2500 per month or less.
2) Lower Middle class people, who earn between Rs.2500 to Rs.7000 per month. Families to feed three or more.
3) Middle class people, who earn between Rs.7000 to Rs.15000 per month.
4) Upper middle class people, who earn between Rs.15000 to Rs.25000 per month.
5) Rich people, who earn anything more than Rs.25000 per month.

The above could be one person to two person earning in a family, so it could be considered as household income. The problem is - people or families would come under my classification or vary time to time - based on the number of family members.

Say for example, a family increases by population and he stays with the same salary, then they slowly come down to a different classification of people in Trichy. Please note that this classification only applies to Trichy.

Ok, now we have classified people. Let us see what do they do -

1) Labour class does all the low level jobs like cleaning, mechanical work, very very hardworking, sweeping, house work etc.,

2) Lower middle class would be two people earning and doing the same work as above labour class. This category is also hard working and lot of manual work job.

3) Middle class is more of people working in offices, clerks and sit and do jobs, accountants etc.,

4) Upper middle class is more of banking, insurance, service, retail and education, teaching, some IT or ITeS related folks.

5) Rich people are more of corporate people, any kind of business men and women, politicians, specifically IT people and at last thugs, who live on interest (finance).

Trichy - a reality check - Trichy Economy Trend - April 2009

I was talking to some experts working in corporates in Trichy to see what is the trend going on.

Overall, it seems to be bleak in terms of economy across all the industries, due to global recession.

Since the banking and insurance are not doing well, there is obviously downward trend in Information Technology. All of the Loans and majority of the Projects comes from Banking and Insurance industry to IT - hence it seems be a dull market for now.

Industries in Trichy are scaling down. Both in terms of cost and also willing to close down industries, when the unit does not make profit.

Auto industry, Mobil retail and FMCG are all suffering.

Another new trend in Trichy is - all the corporate retail shops like Reliance Fresh, Mobile outlets etc., are renegotiating the rent with the land lords and delaying the rent payment overall with the landlords. Even they are threatening that they would not vacate, if they don't reduce the rent of the property. The retail units have promised on a rent in boom period and now they are trying to reduce it.

About unemployment - People are trying to stay in the jobs, wherever they are. Employers are cutting salaries and laying off. Even the salaries are paid delayed. No questions asked!

Companies recruiting in campus, has not sent joining letters , including corporate companies. This leads to more unemployment. My advice for these unemployed - go and do higher studies until the economy comes back.

Anyway, overall things seems to be down. Hopefully market would recover globally and we will prosper soon!

Having said all these - as always politicians, cinema executives/actors, some corporate businessmen, illegal businessmen and criminals do not have anything less!!