ACMA not keen on reservations for locals in Haryana in component industry: Here’s why!

While the case of Haryana has come to the fore now, many other states in the past have pushed for these kind of incentives. However, these mostly have not been approved

By:November 9, 2020 3:43 PM
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In what can be termed as a slap to the reservation system observed in India, the Automotive Component Manufacturers Association of India or ACMA have asked the Haryana government to reconsider its decision. The state assembly recently passed a bill that says that in blue-collar jobs or in the private sector, 75 per cent reservation should be for the locals. The Haryana State Employment of Local Candidates bill approves of this. Deepak Jain, president of ACMA said that the component as well as Indian auto industry is a global one. Reservations of these kind will not only impact the ease of doing business in the state and might hamper future investment. He further stressed that the component industry, to produce high quality goods, needs a skilled workforce. Hiring in this sector is done based on the talent as well as skills needed than just domicile.

ACMA has a membership covering more than 850 manufacturers from all over India. In turn, these members account for almost 90 per cent of the component manufacturing in the country. Overall, these contribute to 2.3 per cent of the Indian GDP. More than 25 per cent of these components are exported to different parts of the world, with the US and Europe being the major importers.

While the case of Haryana has come to the fore now, many other states in the past have pushed for these kind of incentives. However, these mostly have not been approved. Deepak Jain’s statement is testimony that it is indeed skill that rules supreme than the case of where the person was born. If implemented, it will bring in an equality within the country. Migrant workers too will find it hard to find jobs. At present, major component manufacturers are from Maharashtra, Delhi-NCR and Tamil Nadu. Other states too are joining in the fray, with EV tech being promoted.

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