Stringent laws dissuade foreigners from working in India: IACC

Stringent laws dissuade foreigners from working in India: IACC
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First Published: Wed, Jul 11 2007. 03 53 PM IST
Updated: Wed, Jul 11 2007. 03 53 PM IST
By PTI
New Delhi: Work laws in India, including stringent permits and bureaucratic redtape and delays in getting jobs are discouraging foreigners seeking employment in the country, which is at present suffering a severe shortage of skilled workers, says a new study.
The shortfall of skilled manpower in the country can be filled up by highly skilled expatriates who are eager to tap the average 11.3 million net new jobs generated annually, according to the recent study conducted by the Indo-American Chamber of Commerce (IACC).
Bureaucratic hassles and work visas that do not permit most foreigners from switching jobs easily are the main issues that dissuade them from choosing India with most of them settling for other Asian places like China, Hong Kong and Singapore.
More and more foreigners are also looking for jobs in Asia on account of job cuts, outsourcing and high taxes in the western countries, yet the number of foreigners working in India amount to only about twenty to thirty thousand as compared to more than 1 lakh expats working in China, said IACC President Deepak Panwa.
India does have a large skilled labour pool but few of them are employable. According to a Nasscom study only one out of every four engineering graduates from India have the requisite skills and expertise for the job they apply for.
With an increasing demand in the BPO and technology sectors like the pharma industry the need for skilled labour is ever increasing in India.
About 11.3 million jobs are created every year in India compared to 7 million in China, 2.7 million in Brazil and 0.7 million in Russia says the IACC study.
“The time is ripe for India Inc. to admit that it is moving towards a major crunch in manpower supply. India Inc. needs to take stock of the situation and gear towards a global war for talent. The West provides a huge pool of resources that India can easily tap into”, said IACC President Mr Deepak Panwa.
Foreigners planning to live in India for long have to register with the Foreigner’s Registration Office within six months of arrival. Work visas are generally issued for a particular job, therefore preventing most foreigners from changing their jobs in India, the study says.
The report suggests a single window clearance and simpler work permits to encourage foreigners to come to India.
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First Published: Wed, Jul 11 2007. 03 53 PM IST