Labour Industry of India

This is my first blog entry so please excuse me if there are any mistakes.Recently a lot of articles are making headlines in the newspaper on the issue of Labour Shortage, which is becoming headache for players in Infrastructure & Real Estate Sector. It is truly said that sometimes good things also bring in with them new set of problems. Same is true with India's Growth Story, factors like pool of cheap labour & untapped demand attracted many people within and outside the country post liberalization which has led to development in country.

Migrant Labour from Bihar contributes 50% of the Unskilled workers Nationally but this economic development has created peculiar problem for the Infrastructure & Real Estate Sector. According to Bihar Institute of Economics sciences, migration of labour has decreased by around 30% in the last few years and led to higher wages. Experts Says reasons behind this recent trend are private investment inflows after Nitish Kumar's entry in bihar government in 2005 & Mahatma Gandhi National Rural Employment Guarantee Scheme. They believe that scheme is luring away labour from work.

Development is good thing for the country and India was bound to loose advantage of cheap labour some or other day, but through this blog i want to pose this question whether Subsidiary/ Scheme are effective measures which are floated by the government of India. Some people in the government are in favour of it while others are against it. Agriculture Minister Sharad Powar has suggested to avoid applicability of above scheme in the peak agricultural season but the rural Ministry is against it. I would like to hear comments from the readers of blog

For Reference:

Labour Shortage, wage hike hits Indian industry hard: FICCI, Economic Times [Oct 9, 2011]

Bihar's Economic Growth causing Labour Shortages, Higher wages in other parts of Country, Economic Times [ Nov 8th 2011]

Nikhil Agrawal [CE08B055]