NEW DELHI: The Auto Component Manufacturers Association (ACMA) and the Federation of Indian Chambers of Commerce and Industry (FICCI) both criticised the Haryana sovernment’s new job reservation policy in the private sector, saying on Thursday that the move will spell disaster and adversely impact business activities in the state.
The state government had, on March 2, passed the Haryana State Employment of Local Candidates Bill that mandates 75 per cent reservation in private sector factory and other blue-collar jobs for locals.
“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,” said Deepak Jain, President of ACMA in a statement.
He added that the industry is keen that the state remains attractive for fresh investments, since in the last couple of years, automotive sector investments have been largely destined for other states.
At present, Haryana is home to the facilities of large OEMs such as Maruti Suzuki, Hero MotorCorp, and Honda 2-Wheelers. The state also has one of the highest concentration of component manufacturers.
The automotive industry, with investments of over Rs 40,000 crore, accounts for more than 25 per cent of Haryana’s GDP and creates employment exceeding 10 lakh.
Federation of Indian Chambers of Commerce and Industry (FICCI) President Uday Shankar, meanwhile, termed the new policy as ‘regressive straightjacket’ that will force the industry to look beyond the state.
“It will spell disaster for the industrial development and private investment in the state... FICCI also believes that this move is against the spirit of the constitution the gives the citizens of India,” he said.