Sunday, October 30, 2011

Maruthi's move to Gujarat: Cause? Effect?

Any reaction to news paper reports has a high likely hood of being superficial; yet, something must be said about the causes and effects of Maruthi Suzuki's plans to setup a third manufacturing plant in Gujarat. Especially if it is a knee-jerk reaction to what happened in Manesar.

First: What does Maruthi expect to change - from Manesar to wherever-in-Gujarat? More docile / servile workers? Or an eager-to-please Government that will put down any unrest with an iron hand? If these two reasons are anywhere at the top, then they aren't exactly setting a stellar example of leadership. Sooner than later, workers will fight to solve their problems. Governments will need to address the causes and not just appease the industrialists.

Second: While the initiative to develop home-state cannot be faulted per se, when a leader aspires to elevate himself to the national level, what message does he send by propping Gujarat up at the expense of any other state? Why should people from other states trust him to not sell them out after he arrives in Delhi?

At a minimum, I would ask these questions:
a) How is Gujarat setting an example of better "Land acquisition and rehabilitation" methods - so that we all understand what WB, UP and other states can learn?
b) How is Gujarat setting an example of promoting harmonious labor relations, that Haryana might learn?
c) What is the impact of Gujarat's industry-favorable policies on potential imbalances at the national level?
d) We are quick to assume that all this is good for Gujarat. Is it really in accordance with a sustainable growth plan, or is unplanned opportunism?

Before you get the wrong idea, time to clarify. I am all for progressive policies and speedy execution. Heavens know we are not exactly setting world records on these areas; so anything anyone (including Modi) does to kick our collective backsides is most heartily welcome.

Finally, one area for Haryana (the people and the Government) to introspect. It is clear that the state's image has taken a beating. How to balance the interests of all stakeholders, act promptly as well as justly and create the right image for the state - or at a minimum avoid a PR debacle? 

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