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Harayana govt’s move to reserve 75% for locals could be a dampener for the private sector

Haryana chief minister Manohar Lal Khattar

The Haryana government’s decision to reserve 75 per cent jobs in its private sector for people with domicile certificates could dent investments.

In a statement, Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said, “At a time when it is important to attract investments at state level, the Haryana Government could have avoided imposing restrictions on Industry. Reservation affects productivity and Industry competitiveness. With Prime Minister’s vision of ‘Ek Bharat Shrestha Bharat’ we look forward to an integrated and mobile labour market within the country.”

The reservation proposal was one of the poll promises made by the Jannayak Janta Party (JJP) which is the ruling BJP's alliance partner.

Earlier, the JJP came out in support of BJP’s farm laws.

“The governor today gave his assent to the Haryana State Employment of Local Candidates Bill, 2020, providing quota for local people in private sector jobs that offer a salary of less than Rs 50,000 a month,” chief minister Manohar Lal Khattar said.

However, sources said that Haryana has remained one of the favourite investment destinations for the private sector but such restrictive moves can be a dampener.

“No company would want to invest in a state if it has to reserve 75 per cent of the jobs for locals,” a senior executive said adding that other states may be compelled to come out with such proposals as well, which can be a dampener for the private sector.

Analysts said that the country at this juncture must focus on economic revival by boosting private sector investments.

This move could also go against BJP’s tenet that good economics is good politics.