Frontline Magazine: Ahmedabad: Thursday, 14Th
August 2025.
RTI request reveals large-scale violation by industrial units. Every year, several companies are found guilty of non-compliance.
As unemployment continues
to trouble the country’s youth and the gap between economic growth and job
creation widens, the demand to reserve jobs for local residents is gaining
momentum across party lines and State borders. The 2020 Haryana State Employment
of Local Candidates Bill, passed by the BJP-led government, mandates 75 per
cent reservation in new private sector jobs offering less than Rs.50,000 per
month for local youth.
More recently, the Congress-led Karnataka government under Chief Minister Siddaramaiah approved a Bill proposing up to 75 per cent reservation for local residents in private sector jobs, including 70 per cent in non-management roles. (It proposed the appointment of Kannadigas to 50 per cent of management positions, 75 per cent of non-management positions, and a 100 per cent reservation for Group C and Group D posts in the private sector.)
Regional parties, too, are amplifying this demand. Ahead of the upcoming Assembly election in Bihar, the Rashtriya Janata Dal has promised a 100 per cent domicile-based job policy to protect the interests of local youth. In Tamil Nadu, the Dravida Munnetra Kazhagam’s election manifesto during its 2021 election campaign committed to introducing a law reserving 75 per cent of private sector jobs for locals.
Gujarat GR of 1995
In Gujarat, there is a Government Resolution (GR) dated March 31, 1995, that directs industries in the State to ensure 85 per cent of their workforce and 60 per cent of the managerial and supervisors are hired locally.
However, information received via a Right to Information (RTI) request shows that this provision remains on paper and is not implemented in the right spirit.
On September 25, 2018, the Gujarat Chief Minister’s Office said on X that the State government would introduce a law requiring industries and service sector companies to offer 80 per cent of jobs to Gujaratis, with 25 per cent specifically to local people from the area where the unit is established. The announcement, made under the then Chief Minister Vijay Rupani, was pitched as a step to create more job opportunities for the State’s youth.
Seven years later, in March 2025, Congress MLA Tushar Chaudhary raised the issue in the Gujarat Assembly. He alleged that while industrial units continued to receive government incentives, they were not fulfilling the promise of hiring local people.
In response, Labour and Employment Minister Balvantsinh Rajput said that the Constitution does not permit any State to enforce such a law. “In Karnataka, where the Congress is in power, they tried to make such a law but could not. No State can legally do this,” he said, adding that Gujarat was still making efforts to ensure that local people get maximum employment.
This contradiction raises a key question: on what legal or policy basis was Gujarat’s youth promised local jobs back in 2018 when it is not legally possible?
Widespread non-compliance
In a written reply to the Gujarat Assembly in March 2025, the State government admitted that several major private companies and government agencies had violated the local jobs policy in Ahmedabad and Mehsana districts.
The response came after Congress MLA Amit Chavda raised concerns about non-compliance in this area. Rajput shared a list of violators, which included 15 companies in Ahmedabad and seven in Mehsana.
Among the private companies that failed to follow the policy were Suzuki Motor Gujarat, Tata Motors, Colgate-Palmolive, and Ford India. Even government-run organisations such as the Airports Authority of India, Steel Authority of India, ONGC’s Institute of Reservoir Studies, Central Warehousing Corporation, and Cotton Corporation of India were found to be non-compliant.
Gujarat prepares reports on rule-breakers twice a year. It has prepared 10 reports in the last five years. An RTI reply revealed that on an average, more than 50 companies were non-compliant every year during the last five years.
Suzuki, Tata, among offenders
Data obtained through an RTI request shows that companies such as Suzuki, Adani Power, Honda, MG Motors, Torrent Pharma, and L&T (Hazira) appeared in all 10 reports of non-compliance. Even Gujarat Cooperative Milk Marketing Federation (GCMMF), better known as Amul, which is considered the pride of Gujarat, was named in all 10 reports for not following the employment norms.
Other big companies such as Tata Motors, Tata Power, Reliance, Alembic Pharma, Vadilal, Zydus Lifesciences, and Siemens were also found non-compliant in some of the reports.
Suzuki Motor Gujarat stands out as one of the worst violators. In 2020, only 23 per cent of its managerial staff were local residents. By 2024, this increased only slightly to 24 per cent.
Even new and high-profile
investments show poor compliance. Tata Advanced Systems Limited (TASL), which
launched its C-295 aircraft unit in October 2024 in the presence of Prime
Minister Narendra Modi and Spanish Prime Minister Pedro Sánchez, had only 21
per cent local representation in managerial roles. Overall, only 49 per cent of
its workforce was from Gujarat, according to the December 2024 report of the
State’s Labour, Skill Development and Employment Department.
JCB India Ltd was also listed as a violator. The December 2021 report shows that only 50 per cent of its managerial staff were local people.
Official action
When MLAs asked what action was taken against companies not following the norms of the GR, the government replied that the officers of the department had written letters to the companies. Lists of non-compliant companies were sent to the District Industry Centres and the State Tax Department for possible legal action. The Directorate of Employment also recommended further action to the Industries Commissioner.
RTI To verify whether actions had been taken against companies flagged for violating the local employment norms, this reporter filed RTI applications with the Commissionerate of Industries and the State Tax Department. The RTI to the Industries Commissionerate sought information on the actions taken on the basis of reports submitted by the Directorate of Employment regarding non-compliant companies.
In its reply dated May 5, 2025, the Public Information Officer (PIO) of the Industries Commissionerate stated that no information was available. An appeal was subsequently filed. On June 16, the First Appellate Authority directed various PIOs to provide any relevant information if it exists. However, no information was received from any of the PIOs following this directive.
The reporter also filed an RTI application with the State Tax Department, seeking details of action taken against companies that violated the local jobs policy. The PIO replied that the department does not have the requested information and that recruitment matters are handled by the Gujarat Public Service Commission and the Gujarat Subordinate Services Selection Board.
An appeal was filed along with copies of Assembly replies as evidence. However, the First Appellate Authority, who is also the Joint Secretary of the Tax Department, upheld the PIO’s response, stating that the information sought does not come under the department’s purview.
While the Directorate of Employment prepares reports on companies that fail to comply with local employment norms, there is no evidence of follow-up action by either the Industries Commissioner or the State Tax Department.
Voices for local
preference
Anupam, founder of a youth collective called Yuva Halla Bol and national spokesperson of the Congress party, said that local people must be given preferential treatment in private sector jobs. While conceding that State-wise domicile-based reservation may face legal hurdles, he insisted that States need a robust policy framework to ensure job opportunities for local people.
Citing the case of Madhepura (Kosi region) in Bihar, a region known for its large-scale out-migration, as a stark example of this imbalance, he said: “Madhepura is one of India’s biggest suppliers of migrant labour. Yet, a major railway factory in the region employs mostly workers from outside the State. Local people are being forced to migrate thousands of kilometres in search of work, even though jobs exist right in their backyard.”
Dipa Sinha, a development economist, concurred. She believes that compensation to land owners for land acquisition in development projects should not be limited to monetary payments. “It should also include sustainable livelihood opportunities, including employment,” she said, underlining the importance of long-term rehabilitation for affected communities.
However, Amrita Datta, Assistant Professor at IIT Hyderabad, offers a different view. She said: “The problem is structural. India’s so-called high-growth story is essentially a jobless growth model. We don’t have an employment policy that ensures fair wages, living wages, or decent work. Instead, this model ends up pitting migrant workers against local workers, leading to social friction.”
She also said that there is evidence to show that migrant workers often take up jobs that local residents may be unwilling or unable to do, and that focusing solely on local preference may overlook deeper issues in the labour market, including class dynamics.
However, supporters of local hiring argue that such policies are necessary to address the socio-economic and environmental impact of unchecked migration. The Haryana Bill’s statement of objectives links migration to the proliferation of slums, pressure on infrastructure, and urban health hazards. It frames local hiring not just as a matter of social justice but also as an environmentally sound and economically efficient approach.
A similar Bill introduced in Gujarat by former Congress MLA Arjun Modhwadia echoes these concerns, urging private companies to prioritise local candidates in lower-wage roles.
Anupam warned of social tensions emerging from the exclusion of locals in employment opportunities. Stating the example of an upcoming power plant in Buxar in Bihar, which is ready to begin operations, he said: “Local residents haven’t been given jobs there, while outsiders have been hired. This kind of neglect creates resentment and can lead to unrest.”
Competition among States
Another factor driving the push for local preference in jobs is competitive federalism. States compete fiercely for corporate investment through financial incentives and land grants and often promise large-scale job creation. For instance, Gujarat’s 2022 semiconductor policy offered significant subsidies to corporates, including 75 per cent land subsidies and a decade of concessional power and water tariffs.
However, people are increasingly questioning whether government support to companies is really helping local people get jobs. It is clear that many companies do not hire local residents. Some activists lament the fact that while businesses benefit from public resources, there is no law or system to make sure they actually employ local people in a meaningful way.
In this context, the political demand for legally enforceable local job quotas serves as a corrective measure to align economic incentives with social outcomes. With the country’s youth facing an uncertain job market and economic benefits failing to percolate downwards, the call for local employment reservation is not just political rhetoric, it is emerging as a response to a deep and widening gap between industrial development and equitable employment distribution.
(Suchak Patel is an independent writer and researcher.)
RTI request reveals large-scale violation by industrial units. Every year, several companies are found guilty of non-compliance.
 |
| At an industrial tank manufacturing factory on the outskirts of Ahmedabad, on January 31. Several companies in the State do not adhere to government-mandated norms on hiring local people. | Photo Credit: AMIT DAVE/REUTERS |
More recently, the Congress-led Karnataka government under Chief Minister Siddaramaiah approved a Bill proposing up to 75 per cent reservation for local residents in private sector jobs, including 70 per cent in non-management roles. (It proposed the appointment of Kannadigas to 50 per cent of management positions, 75 per cent of non-management positions, and a 100 per cent reservation for Group C and Group D posts in the private sector.)
Regional parties, too, are amplifying this demand. Ahead of the upcoming Assembly election in Bihar, the Rashtriya Janata Dal has promised a 100 per cent domicile-based job policy to protect the interests of local youth. In Tamil Nadu, the Dravida Munnetra Kazhagam’s election manifesto during its 2021 election campaign committed to introducing a law reserving 75 per cent of private sector jobs for locals.
In Gujarat, there is a Government Resolution (GR) dated March 31, 1995, that directs industries in the State to ensure 85 per cent of their workforce and 60 per cent of the managerial and supervisors are hired locally.
However, information received via a Right to Information (RTI) request shows that this provision remains on paper and is not implemented in the right spirit.
On September 25, 2018, the Gujarat Chief Minister’s Office said on X that the State government would introduce a law requiring industries and service sector companies to offer 80 per cent of jobs to Gujaratis, with 25 per cent specifically to local people from the area where the unit is established. The announcement, made under the then Chief Minister Vijay Rupani, was pitched as a step to create more job opportunities for the State’s youth.
Seven years later, in March 2025, Congress MLA Tushar Chaudhary raised the issue in the Gujarat Assembly. He alleged that while industrial units continued to receive government incentives, they were not fulfilling the promise of hiring local people.
In response, Labour and Employment Minister Balvantsinh Rajput said that the Constitution does not permit any State to enforce such a law. “In Karnataka, where the Congress is in power, they tried to make such a law but could not. No State can legally do this,” he said, adding that Gujarat was still making efforts to ensure that local people get maximum employment.
This contradiction raises a key question: on what legal or policy basis was Gujarat’s youth promised local jobs back in 2018 when it is not legally possible?
 |
| General Resolution of the Government of Gujarat dated January 31, 1995. Photo Credit: By Special Arrangement |
In a written reply to the Gujarat Assembly in March 2025, the State government admitted that several major private companies and government agencies had violated the local jobs policy in Ahmedabad and Mehsana districts.
The response came after Congress MLA Amit Chavda raised concerns about non-compliance in this area. Rajput shared a list of violators, which included 15 companies in Ahmedabad and seven in Mehsana.
Among the private companies that failed to follow the policy were Suzuki Motor Gujarat, Tata Motors, Colgate-Palmolive, and Ford India. Even government-run organisations such as the Airports Authority of India, Steel Authority of India, ONGC’s Institute of Reservoir Studies, Central Warehousing Corporation, and Cotton Corporation of India were found to be non-compliant.
Gujarat prepares reports on rule-breakers twice a year. It has prepared 10 reports in the last five years. An RTI reply revealed that on an average, more than 50 companies were non-compliant every year during the last five years.
Suzuki, Tata, among offenders
Data obtained through an RTI request shows that companies such as Suzuki, Adani Power, Honda, MG Motors, Torrent Pharma, and L&T (Hazira) appeared in all 10 reports of non-compliance. Even Gujarat Cooperative Milk Marketing Federation (GCMMF), better known as Amul, which is considered the pride of Gujarat, was named in all 10 reports for not following the employment norms.
Other big companies such as Tata Motors, Tata Power, Reliance, Alembic Pharma, Vadilal, Zydus Lifesciences, and Siemens were also found non-compliant in some of the reports.
Suzuki Motor Gujarat stands out as one of the worst violators. In 2020, only 23 per cent of its managerial staff were local residents. By 2024, this increased only slightly to 24 per cent.
 |
| RTI reply to the reporter dated May 28, 2025. Photo Credit: By Special Arrangement |
JCB India Ltd was also listed as a violator. The December 2021 report shows that only 50 per cent of its managerial staff were local people.
Official action
When MLAs asked what action was taken against companies not following the norms of the GR, the government replied that the officers of the department had written letters to the companies. Lists of non-compliant companies were sent to the District Industry Centres and the State Tax Department for possible legal action. The Directorate of Employment also recommended further action to the Industries Commissioner.
RTI To verify whether actions had been taken against companies flagged for violating the local employment norms, this reporter filed RTI applications with the Commissionerate of Industries and the State Tax Department. The RTI to the Industries Commissionerate sought information on the actions taken on the basis of reports submitted by the Directorate of Employment regarding non-compliant companies.
In its reply dated May 5, 2025, the Public Information Officer (PIO) of the Industries Commissionerate stated that no information was available. An appeal was subsequently filed. On June 16, the First Appellate Authority directed various PIOs to provide any relevant information if it exists. However, no information was received from any of the PIOs following this directive.
The reporter also filed an RTI application with the State Tax Department, seeking details of action taken against companies that violated the local jobs policy. The PIO replied that the department does not have the requested information and that recruitment matters are handled by the Gujarat Public Service Commission and the Gujarat Subordinate Services Selection Board.
An appeal was filed along with copies of Assembly replies as evidence. However, the First Appellate Authority, who is also the Joint Secretary of the Tax Department, upheld the PIO’s response, stating that the information sought does not come under the department’s purview.
While the Directorate of Employment prepares reports on companies that fail to comply with local employment norms, there is no evidence of follow-up action by either the Industries Commissioner or the State Tax Department.
 |
| RTI reply from the PIO of the Commissionerate of Industries dated May 5, 2025. Photo Credit: By Special Arrangement |
Anupam, founder of a youth collective called Yuva Halla Bol and national spokesperson of the Congress party, said that local people must be given preferential treatment in private sector jobs. While conceding that State-wise domicile-based reservation may face legal hurdles, he insisted that States need a robust policy framework to ensure job opportunities for local people.
Citing the case of Madhepura (Kosi region) in Bihar, a region known for its large-scale out-migration, as a stark example of this imbalance, he said: “Madhepura is one of India’s biggest suppliers of migrant labour. Yet, a major railway factory in the region employs mostly workers from outside the State. Local people are being forced to migrate thousands of kilometres in search of work, even though jobs exist right in their backyard.”
Dipa Sinha, a development economist, concurred. She believes that compensation to land owners for land acquisition in development projects should not be limited to monetary payments. “It should also include sustainable livelihood opportunities, including employment,” she said, underlining the importance of long-term rehabilitation for affected communities.
However, Amrita Datta, Assistant Professor at IIT Hyderabad, offers a different view. She said: “The problem is structural. India’s so-called high-growth story is essentially a jobless growth model. We don’t have an employment policy that ensures fair wages, living wages, or decent work. Instead, this model ends up pitting migrant workers against local workers, leading to social friction.”
She also said that there is evidence to show that migrant workers often take up jobs that local residents may be unwilling or unable to do, and that focusing solely on local preference may overlook deeper issues in the labour market, including class dynamics.
However, supporters of local hiring argue that such policies are necessary to address the socio-economic and environmental impact of unchecked migration. The Haryana Bill’s statement of objectives links migration to the proliferation of slums, pressure on infrastructure, and urban health hazards. It frames local hiring not just as a matter of social justice but also as an environmentally sound and economically efficient approach.
A similar Bill introduced in Gujarat by former Congress MLA Arjun Modhwadia echoes these concerns, urging private companies to prioritise local candidates in lower-wage roles.
Anupam warned of social tensions emerging from the exclusion of locals in employment opportunities. Stating the example of an upcoming power plant in Buxar in Bihar, which is ready to begin operations, he said: “Local residents haven’t been given jobs there, while outsiders have been hired. This kind of neglect creates resentment and can lead to unrest.”
Competition among States
Another factor driving the push for local preference in jobs is competitive federalism. States compete fiercely for corporate investment through financial incentives and land grants and often promise large-scale job creation. For instance, Gujarat’s 2022 semiconductor policy offered significant subsidies to corporates, including 75 per cent land subsidies and a decade of concessional power and water tariffs.
However, people are increasingly questioning whether government support to companies is really helping local people get jobs. It is clear that many companies do not hire local residents. Some activists lament the fact that while businesses benefit from public resources, there is no law or system to make sure they actually employ local people in a meaningful way.
In this context, the political demand for legally enforceable local job quotas serves as a corrective measure to align economic incentives with social outcomes. With the country’s youth facing an uncertain job market and economic benefits failing to percolate downwards, the call for local employment reservation is not just political rhetoric, it is emerging as a response to a deep and widening gap between industrial development and equitable employment distribution.
(Suchak Patel is an independent writer and researcher.)
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