Further loss of migrant labor to sustain surviving MSME, says AIAI

All India Association of Industries(AIAI) is a premier Chamber of Commerce , an apex body  representing the trade, industry and employment since 1956 . AIAI is a think tank established to suggest government about remedial measures in the changing economic scenario.

With most of the MSME now cash stripped and having succumbed to the COVID19 apocalypse , the loss of migrant labor is another thunderbolt to the ones surviving, says AIAI.

We seek the attention of the Government on this aspect and hope they take corrective actions in this regard. The relief package to MSME is still far away on Government agenda neither is the Government taking any bold steps towards Quantitative easing which could inadvertently put cash in hands of the employers . This act is further demotivating the MSME sector who has been the burning fire for food in many homes.

In view of various Indians working and doing business overseas, Middle East, GCC and other countries which are approx 1.3 billion . Some of them have already come and others are set to come soon . They may look forward for employment and opportunities in India. Besides nearly 1 billion are expected to lose jobs or business within India . These are all alarming and serious issues which Government needs to confront in future and seek solution on the same.

 In this situation neither Central nor State nor other authorities or RBI have not thought seriously about it. And we feel there is no preparedness on this front. Hence it is necessary for the Government to pay attention to this matter with seriousness and on priority. 

On the other hand, there has been a huge labor outflux from the urban areas of many Tier 1 and Tier 2 cities owing to the recent provision of railway transport to reach the labor home .

This decision may seem, sweet to sound at first place, an announcement of glee to the migrant labor however what awaits them home is another quarantine bereft of any standard healthcare. This means the migrant labor who have fled the cities will be entrapped for another 15-20 days in village quarantines before they are actually allowed to mingle with their families . A stringent testing awaits them even on the doorsteps of their own villages as family members refuse to accommodate them in their homes directly, owing the rapid announcement about the disease having reached their villages , especially in the states of UP and Bihar .

On the other hand if such labor who were crammed up in 10 by 10 feet rooms could have been made home in larger camps in around such cities with provision of proper healthcare , food and rest provisions then they would have preferred to stay out in cities at a time when the LOCKDOWN 3.0 is just 15 days away. Once they would have resumed their employment  post such a LOCKDOWN they would have stayed back till a time they normally left for their villages.

At a time when the Lockdown is scheduled to end and MSMEs seek respite to open up operations , the government is providing such labor facilitation to move back to their villages. This translates into a situation that the labor would not report on employment may be till the entire air about the disease is cleared out .

Thus the MSMEs and retail sector have miserably lost their labor.And now will have to resort to high wages to woo them back to work .

Thus, the Governments strategy has put the MSME sector in another vicious net of problems working against their favor.
We hope are suggestions are taken in good spirit of development of the economy in order to boost its growth.