Uttar Pradesh government has directed that 40 per cent jobs in the private sector be reserved for local youths in Greater Noida. The circular issued by the Greater Noida Industrial Development Authority declared that “more than or equal to 40 per cent employment to local employees” should be ensured in the industries across the authority area.
The move has been criticised by the multinational companies of the region, while the local legislators welcomed the same saying this was long overdue, and that local youth deserved to get employment opportunities as per their eligibility.
However, the Global Association for Corporate Services (GACS) feels that this move requires more clarity in terms of who can qualify as local. It is not clear whether all those who can produce a local address proof will qualify as local. Also, it is not really practical to hire 40 per cent of the workforce from a limited area. This will also discourage industries from setting up shop in the area.
The Association points out that the needs of the business process and knowledge process outsourcing companies cannot be entirely met by locals.
The similar bill for reservation that was mooted by the Haryana government last month also received flak. The new Haryana State Employment of Local Candidates Act, 2020, proposes that at least 75 per cent of jobs — with a monthly remuneration of up to Rs 50,000— in the private sector be reserved for locals. Many startups located in Gurugram are already thinking of relocating to other states.