ACMA : Haryana reservation law mandating 75% jobs with monthly salary less than Rs 50,000 for local candidates will affect ease of doing business

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Industry body Automotive Component Manufacturers Association (ACMA) has urged the state government of Haryana to reconsider implementing a law that mandates companies to reserve 75% of jobs with monthly salary less than Rs 50,000 for local candidates saying it will adversely impact the ease of doing business in the state.

Stressing on the need for reconsidering such a provision, ACMA President Deepak Jain said, “The Indian auto and auto component industry is a global one, our production not only caters to the domestic demand, but also to international markets. The Indian auto component industry today exports more than 25% of its production, with US and Europe being our leading markets. Our industry requires a skilled workforce to produce high-quality products that are globally competitive. Hiring in our sector is done on the basis of merit and talent rather than the domicile of the candidates. The reason for the industry employing candidates from outside the state is due to the shortage of adequately skilled, locally available manpower.”

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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, Jain added. The automotive industry has invested Rs 40,000 crore in the state, employs 10 lakh people and accounts for a quarter of its GDP. Jain said, “The industry is keen that the state remains attractive for fresh investments, as in the last couple of years, automotive investments have largely been destined to other states.”

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