Analysis | Private job quota for domiciles in MP may nudge other states to follow suit

Bhopal: In what is sure to resonate well with youngsters, Madhya Pradesh Chief Minister Kamal Nath, perhaps for the first time in the country, declared in the state Assembly that his government is considering a law to ensure 70% reservation to domicile youths in private jobs.

Nath on Tuesday claimed the proposed law will ensure that unemployed youths of the state get adequate representation in private sector.

The CM pointed to changes in the Industrial Promotional Policy. “Now, industries will get incentives and other advantage for investment in MP only when they provide 70% employment to residents of the state. We are now going to make a law in this regard,” he said.

A couple of months ago, the CM had gone on record saying those willing to get incentives like land and other facilities to set up industry in Madhya Pradesh will have to employ local youths.

Taking it as good optics, many feel if law with such provisions become a reality, it will strike a chord with locals, but force states in a competition of sorts to push the envelope to appear more concerned about local interests and also this may turn out to be insular in intent. “If the intent takes concrete shape, BJP will have to pull out of its hat something similar, if not better, to beat the ruling party at its wooing game,” said some of the political observers.

Social scientist T R Mohanty sums it up aptly. “The idea is good to give representation to local youth, but it appears more populist than realistic. I am afraid that this type of thinking will also get a competitive response from other political parties and other states, which in turn will stifle private sector.” According to him, the spirit behind growth of private enterprise is competition, capital, good infrastructure and not reservation.

An engineer and a consultant on housing sector, wishing not to be named, says, the focus should be on creating more jobs rather than on thinking on lines of job reservation in private sector.

CII Bhopal zone chairman Animesh Jain feels, “If it happens, 70% reservation will be a bit too steep. This should be mandated only in unskilled category.” He, however, says there is nothing wrong, if the government is providing incentive to industry, industry should also reciprocate.

There are others who do not share the optimism about success in long run. Sounding a note of caution, they say an issue of such an importance should be dealt with after weighing all pros and cons. Given shortage of talent in the state, many feel the decision makers will have to do a lot when it comes to equipping youngsters with the kind of skills required in existing business scenario.