In a statement that has sparked a heated debate across corporate and political circles, Larsen & Toubro (L&T) Chairman S.N. Subrahmanyan has blamed government welfare schemes for the apparent decline in labor mobility in India. According to him, Indians are increasingly reluctant to relocate for jobs or even return to office work. The remarks come after a 90-hour standoff over labor mobilization concerns in the country.
Speaking at a corporate event, Subrahmanyan expressed his frustration with the current labor trends, stating, “For employing 4 lakh laborers, we have to mobilize nearly 6 million. The problem is that people just don’t want to come to work anymore.” He specifically pointed fingers at schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and financial aid through Jan Dhan accounts, arguing that these programs have made workers too comfortable to seek employment in cities or construction sites.
The Corporate vs. Welfare Debate
His statement has reignited a larger debate on whether social welfare policies are discouraging work or simply providing a safety net for millions. MGNREGA, a flagship rural employment scheme, guarantees 100 days of wage employment to rural households, ensuring that people do not have to migrate in desperation. While corporate leaders argue that such initiatives are reducing the available workforce for industrial and urban sectors, social activists contend that they prevent exploitation and provide dignity to rural workers.
Critics of Subrahmanyan’s statement were quick to point out that labor shortages might have more to do with poor working conditions, low wages, and lack of job security rather than welfare schemes alone. Others argue that post-pandemic shifts have changed workforce dynamics globally, with flexible work models becoming the new norm.
Reality Check: Is Labor Really Unwilling?
While there has been an undeniable shift in employment patterns, the notion that Indians don’t want to work is an oversimplification. The construction sector, which relies heavily on migrant labor, has long been plagued by issues such as delayed payments, unsafe working conditions, and lack of social security benefits. Additionally, with advancements in digital employment and the gig economy, many workers are exploring alternative avenues instead of traditional labor-intensive jobs.
Meanwhile, many experts argue that if companies truly want to attract workers, they should focus on offering competitive salaries, improved workplace conditions, and benefits rather than blaming government policies.
The Big Question: Will India’s Workforce Crisis Deepen?
Subrahmanyan’s comments highlight a growing concern among employers about the changing attitudes toward traditional employment. But is blaming government welfare schemes the right approach? Or should the corporate sector adapt to evolving workforce expectations and provide better incentives?
One thing is clear: The post-pandemic labor landscape has shifted significantly, and simply expecting workers to return to business-as-usual might no longer be a viable strategy.