Economics

Indian States Fight Each Other for Jobs With Laws to Hire Local

Business group warns laws could ‘scare future investors away’
State politicians embrace protectionism as economy slumps

A closed marketplace in Rohtak during the lockdown in Aug. 2020. Millions of jobs were lost during last year’s unprecedented lockdown that lasted for nearly three months.Photographer: Manoj Dhaka/Hindustan Times/Getty Images

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Bibhudatta Pradhan

March 31, 2021 at 9:00 PM UTC

Updated on

April 1, 2021 at 4:14 AM UTC

This article is for subscribers only.

A short drive from the capital of New Delhi, Gurugram has become one of India’s wealthiest cities with business-friendly policies that have attracted multinationals such as Alphabet Inc.’s Google, PepsiCo Inc. and Nestle India Ltd. But suddenly that reputation is at risk.

A slowing economy and a dearth of new jobs has prompted northern Haryana state, where Gurugram is located, to implement a new law last month that limits private companies from hiring workers from other states. Passed by a government controlled by Prime Minister Narendra Modi’s ruling Bharatiya Janata Party, such laws are quickly becoming popular with other states.