It
seems Bihar’s ‘fast’ economic growth under the leadership of visionary
Chief Minister Nitish Kumar has not gone down well with some of the
corporate and industry heads who link the present labour crisis in
construction industry to the Bihar’s booming economy.
If Bihar has been providing cheap labour
all along to the construction industry, it can be interpreted that
construction companies across India have been ‘exploiting’ the migrant
labourers by paying a paltry sum. It is highly deplorable that
construction companies are now listing labour crisis as one of the
reasons for the steep hike in home prices.
The developers, instead of blaming the
spurt in labour charges, should think of automation options available in
the market, which not only reduces the construction cost but also helps
to complete the projects before schedule.
Former head of market regulator SEBI CB
Bhave has recently surprised the audience in Londan by saying that
Bihar, under Nitish Kumar, is doing 'very well', but the state's
development has led to labour shortages hurting India's construction
industry. Due to many new job opportunities and improved conditions in
Bihar, not many in the state now migrate to other states in search of
livelihood.
“This is particularly affecting the construction industry adversely,” Bhave said at a high profile seminar of top business and financial leaders from India and London, reports PTI.
The seminar, organised by the City of London, discussed various issues concerning India's economy - including last week's reforms such as hike in diesel prices, changes in rules to allow FDI in aviation and multi-brand retail sectors - but quite a few in the audience were surprised at the Bihar example.
"The construction industry is suffering from serious labour shortage. For years, the industry depended on labourers from Bihar, but now when they take leave and go home, 70 per cent do not return to work on construction projects in other states," Bhave said.
Not only the reforms in Bihar which make people comfortable at their home state, the Central government’s sponsored National Rural Employment Guarantee Scheme, which gives people in rural areas 100 days of assured employment in a year, has also arrested people from less developed states migrating to other states in search of jobs. Most these uneducated rural youth generally land up in construction sites as daily wagers.
“This is particularly affecting the construction industry adversely,” Bhave said at a high profile seminar of top business and financial leaders from India and London, reports PTI.
The seminar, organised by the City of London, discussed various issues concerning India's economy - including last week's reforms such as hike in diesel prices, changes in rules to allow FDI in aviation and multi-brand retail sectors - but quite a few in the audience were surprised at the Bihar example.
"The construction industry is suffering from serious labour shortage. For years, the industry depended on labourers from Bihar, but now when they take leave and go home, 70 per cent do not return to work on construction projects in other states," Bhave said.
Not only the reforms in Bihar which make people comfortable at their home state, the Central government’s sponsored National Rural Employment Guarantee Scheme, which gives people in rural areas 100 days of assured employment in a year, has also arrested people from less developed states migrating to other states in search of jobs. Most these uneducated rural youth generally land up in construction sites as daily wagers.
Apart from Bihar, the construction industry is getting labourers from Odisha, Andhra Pradesh, Assam and Uttar Pradesh.
Nasser Munjee, chairman of the
Development Credit Bank, also noted the improved conditions in Bihar,
particularly in cities, but added that much needed to be done for
development to reach rural areas in the state.
On the phenomenon of some states doing much better than others in terms of economic growth and development, Ajay Shah, senior fellow at the Delhi-based National Institute of Public Finance and Policy, said "competitive dynamics" between states in India was yet to emerge.
On the phenomenon of some states doing much better than others in terms of economic growth and development, Ajay Shah, senior fellow at the Delhi-based National Institute of Public Finance and Policy, said "competitive dynamics" between states in India was yet to emerge.
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