Connect with us

Hi, what are you looking for?

Commodities & Futures

Indian state’s hiring rule spells disaster, industry group warns

Commodities1 hour ago (Mar 04, 2021 05:40AM ET)

(C) Reuters. FILE PHOTO: Cars are seen parked at Maruti Suzuki’s plant at Manesar

NEW DELHI (Reuters) – India’s northern state of Haryana, where several automakers, component suppliers and big tech firms are based, faces an investment and development disaster from a new hiring rule to tackle high unemployment, lobby groups warned on Thursday.

The Federation of Indian Chambers of Commerce and Industry (FICCI) said the policy, which requires 75% of all low to mid-paying private sector jobs to go to locals, would spell disaster for Haryana’s “industrial development and private investment”.

The 10-year rule, applicable to jobs paying up to 50,000 rupees ($690) a month, came into effect this week in the state neighbouring the Indian capital New Delhi, which is facing worsening jobless figures as a result of the coronavirus crisis.

Haryana’s rule affects firms including India’s biggest carmaker Maruti Suzuki and business process outsourcing firms such as Genpact (NYSE:G).

Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL)’s Google also have their corporate offices in the state, which is ruled by Indian Prime Minister Narendra Modi’s party.

“Investors and entrepreneurs need to source the best human resources available in (the) country to be competitive and successful,” FICCI President Uday Shankar, who formerly headed Disney’s India unit, said in a statement.

“To force them in such a regressive straight-jacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state.”

The auto industry said it hired workers based on merit.

“Such a move would not only adversely impact the ‘ease of doing business’ in the state, but also be detrimental to Haryana’s image of an industry friendly destination,” Deepak Jain, president of the Automotive Component Manufacturers Association of India, said in a statement.

The auto industry has invested over 400 billion rupees in the state, creates employment for 1 million people and accounts for more than 25% of its GDP, according to ACMA.

The Haryana government did not respond to a request for comment.

Haryana’s unemployment rate https://unemploymentinindia.cmie.com hit 26.4% in February, the highest in India and more than three times the national figure, data from the Centre for Monitoring Indian Economy showed.

Other states like Maharashtra and Madhya Pradesh have also moved to preserve jobs for locals as unemployment surged.

($1 = 72.6375 Indian rupees)

Indian state’s hiring rule spells disaster, industry group warns

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved