Haryana dictates 75% local reservation in private jobs

The Haryana government has passed the 'The Haryana State Employment of Local Candidates Bill, 2020' mandating 75 percent reservations for the locals in the private sector jobs with a salary below Rs 50,000.

The new law threatens to deal a blow to the Haryana growth story and betrays the dangerously flawed understanding of the political class regarding economic growth and cities. It also demonstrates that uncertainty and arbitrariness remain the hallmark of policymaking in India.

Haryana is a small state with a small population. Many industries have grown here because of the government's business-friendly attitude, availability of land, and proximity to Delhi. The industrial belt across Gurugram and Manesar is a hub for hundreds of companies across sectors, such as outsourcing, IT services, automobiles, consumer goods and electronics. They have backward and forward linkages all across India and rely on the free movement of labour not just for competitiveness but also for the production process itself. Any policy that fails to consider the multi-layered supply chains and interdependence of services and manufacturing is a recipe for economic disaster.