Haryana's 75% reservation policy for locals to impact ease of doing business: ACMA

Auto component industry body ACMA on Monday requested the Haryana government to reconsider the 75 per cent employment reservation for locals in private enterprises, saying the move would adversely impact the ease of doing business in the state.

On November 5, the state assembly passed the Haryana State Employment of Local Candidates Bill that mandates 75 per cent reservation in factories and other blue-collar jobs in the private sector for locals.

Stressing on the need for reconsidering such a provision, ACMA President Deepak Jain said the Indian auto and component industry is a global one and the production not only caters to the domestic demand but also international markets.

The Indian component industry today exports more than 25 per cent of its production, with the US and Europe being the leading markets, he added.

"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 talent and skills needed by the industry rather than on the domicile of the candidates.

"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 state and in attracting future investments," Jain said.

Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian auto component industry. Its membership of over 850 manufacturers contributes more than 90 per cent of the auto component industry's turnover in the organised sector.

Currently, the turnover of the auto component industry is $57 billion, contributing 2.3 per cent to India's GDP.