{"id":4105,"date":"2019-08-20T16:40:56","date_gmt":"2019-08-20T11:10:56","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=4105"},"modified":"2019-08-20T16:40:56","modified_gmt":"2019-08-20T11:10:56","slug":"75-per-cent-of-jobs-in-an-enterprise-to-locals-andhra-pradesh-government","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/75-per-cent-of-jobs-in-an-enterprise-to-locals-andhra-pradesh-government\/","title":{"rendered":"75 per cent of jobs in an enterprise to locals: Andhra Pradesh government"},"content":{"rendered":"<p><strong>Relevance: mains: G.S paper III: Indian Economy<\/strong><\/p>\n<p><strong>Context<\/strong><\/p>\n<ul>\n<li>Raises concern the latest and the most serious being the law passed by the Andhra Pradesh government to reserve 75 per cent of jobs in an enterprise to locals.<\/li>\n<li>The trigger for this politically rewarding but otherwise a debilitating move is an economy which is witnessing a \u2018job-less\u2019 growth, coupled with an agricultural sector that is in deep distress.<\/li>\n<li>The sight of people from other States \u2018taking away\u2019 their jobs has caused heartburns among a section of the society that has felt left out.<\/li>\n<\/ul>\n<p><strong>Little benefit<\/strong><\/p>\n<ul>\n<li>The Andhra Pradesh Employment of Local Candidates in the Industries\/Factories Act 2019 insists that every enterprise, new and existing, should reserve 75 per cent of jobs for locals. Existing industries have three years to comply with the law.<\/li>\n<li>If the businesses do not find qualified people for employment, they should train them in that time. For that purpose, the State will set up skill-development centres.<\/li>\n<li>Those not complying have been warned of penal action.<\/li>\n<\/ul>\n<p><strong>Why the law is bad?<\/strong><\/p>\n<ul>\n<li>It is unconstitutional. Article 19 of the Indian Constitution guarantees free movement. An Indian can work and live in any part of the country.<\/li>\n<li>It also ignores a Supreme Court order which caps reservation to a maximum of 50 per cent. That apart, the policy is not borne out by facts.<\/li>\n<li>The census data on migration paints a different picture. While the stock of inter-State migration between 2001 and 2011 has risen from 41 million to 54 million, as a share of the total population, it has remained at 4 per cent.<\/li>\n<li>In fact, in majority of India\u2019s districts, inter-State workers account for less than 1 per cent of urban workers.<\/li>\n<li>Most migration, the data suggests, happens within a State. Thus, this law serves little purpose.<\/li>\n<\/ul>\n<p><strong>Skilling workforce<\/strong><\/p>\n<ul>\n<li>To passing a law that mandates employment of locals for all industries will be counter-productive.<\/li>\n<li>Lack of qualified people appears to be the only answer.<\/li>\n<li>To compete in a highly competitive market such as India, you need to produce a world-class product and that cannot be done without quality workforce.<\/li>\n<li>It is quite understandable that the newly carved out State of AP will take some time to build the necessary infrastructure, skill its manpower and build the supply chain that a highly industrialised environment demands.<\/li>\n<li>But in the absence of these, such protectionist policies will only leave it industrially backward, as investors would prefer to invest elsewhere in the country.<\/li>\n<li>Its leadership position at the top of the \u2018Ease of Doing Business\u2019 ranking in the country is already at stake.<\/li>\n<\/ul>\n<p><strong>Investments at stake<\/strong><\/p>\n<ul>\n<li>Policymakers in AP are forgetting that there is intense competition among the States in India to attract investment.<\/li>\n<li>Every State is offering incentives these days and what is tipping the scale is quality of manpower.<\/li>\n<li>AP\u2019s policymakers have a shining example in their own State \u2013 Sri City.<\/li>\n<li>This industrial township, spread over 100 square kilometres, has investments from over 180 companies from across 27 countries.<\/li>\n<li>The brands here include the likes of Cadbury, Pepsi, Isuzu, Alstom and Kelloggs.<\/li>\n<li>The question they should ask themselves is that would these investments have come if the township was not located just 55 kilometres off Chennai, with a bulk of the employees travelling from the city to work there.<\/li>\n<li>At a time when the world is moving towards Industry 4.0, where technology plays a critical role, skilled manpower happens to be the key differentiator.<\/li>\n<li>Such retrograde policies will only leave the State industrially backward and widen the inequality when it comes to economic development.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<ul>\n<li>A better approach for the AP government would be to identify focus sectors (based on the State\u2019s inherent strengths) for investment, unveil attractive sector-specific policies with incentives that will be too good for investors to ignore and initiate a large-scale skilling programme in consultation with the industry to skill the workers for employment in these sectors.<\/li>\n<li>Only such progressive measures will ensure that investors will flock the State, employ the locals and catalyse its rapid economic development.<\/li>\n<li>As things stand now, none of these are likely to happen.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: mains: G.S paper III: Indian Economy Context Raises concern the latest and the most serious being the law passed<\/p>\n","protected":false},"author":1,"featured_media":3299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[42,43],"tags":[392],"class_list":["post-4105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=4105"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4105\/revisions"}],"predecessor-version":[{"id":4106,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4105\/revisions\/4106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3299"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=4105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=4105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=4105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}