The greatest casualty of the pandemic around the world is the blue coloured labour force. And yes. They need to be taken care of with utmost priority. But do they need to be pampered so much so that it affects their livelihood itself? The image is a glimpse of side effects therein.
Unfortunately politicians in India (after the recently concluded elections in USA as well) have only vote banks in their mind. They forget the industrialists and industries for whom they had laid red carpet by giving them monetary and non-monetary incentives are the backbone of any state. Any mismanagement will lead to their shifting to other states or even out of India causing irreparable damage.
A slowing economy and a dearth of new jobs has prompted northern Haryana state, where Gurugram is located, to implement a new law last month that provides a 75% quota for local job seekers for posts in private companies with a monthly salary of less than INR 50,000 ($683). Gurugram has attracted multinationals such as Alphabet Inc.’s Google, PepsiCo Inc., Nestle India Ltd. and many off-shore back-office operations which need a workforce highly proficient in the English language. But suddenly that reputation is at risk. Haryana is controlled by a State Government whose Central Government is in power in India. One Korean logistics company that recently shifted operations to Gurugram is now drawing up alternate plans because its skilled workforce doesn’t meet requirements under the new law. “The current restriction is something opposite of ease of doing business,” said Hee Chul Jung, secretary-general of the Korean Chamber of Commerce and Industry in India. “The new regulation could scare future investors away that favour flexibility and a dynamic business environment.”
Tasting new blood, more states are forcing companies to hire local, setting up internal trade barriers that could further hinder growth in Asia’s third-biggest economy. Andhra Pradesh, Jharkhand, Tamil Nadu and the list will continue.
“This cure is worse than the disease itself,” said Ravi S. Srivastava, professor and director of the Centre for Employment Studies, Institute for Human Development. “They are doing this for short-term political appeal. This is easier than creating proper infrastructure and an environment for more jobs.” Unlike Singapore’s move to offer incentives to companies that hire local workers, the laws in Haryana and other Indian states force businesses to medical technology division at the Confederation of Indian Industry.“ Industries need the best human resources from where ever they are available in the country,” he said. Apart from possible legal flaws, the law risks pushing away companies that have helped make Gurugram attractive.
NPowersU Expert Opinion
If you kill the goose that lays golden eggs, nature itself will kill you 1 day. All the hard work that ONE PERSON in India has done till now in the international arena will be put to test in coming months. May the best goose win.
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