Gujarat’s manufacturing sector faces acute labour crunch

Ahmedabad, July 3 (KNN) Gujarat's industries are grappling with a scarcity of labor as migrant workers, who were previously employed in the state's industries, are increasingly moving back to their home states. 

Speaking exclusively with KNN India, Federation of Indian Micro and Small & Medium Enterprises (FISME), President Prashant Patel, said, “ With the industrial development taking place in North of India, particularly Uttar Pradesh, has resulted in a redirection of the labor force.”

“Another major reason for the labour shortage in the state is due to the decline in wages in the labour intensive industries such as textiles, which is witnessing a migration of labourers to UP and North India,” he said.

Gujarat’s economy thrives on the ecosystem of its manufacturing industries. The state has 11.2 lakh Micro Small and Medium Enterprises (MSMEs) along with large corporations. 

Further, Patel told KNN India that Automation has negatively impacted the industries resulting in labour crunch. 

“For instances during April-May labourers that went back home for holidays almost 30 per cent did not return,” he added.

The labour shortage is a key concern for Gujarat because it is not just home to several manufacturing clusters where industries are growing and expanding, but is also the third highest in terms of foreign direct investments (FDI), which means more industries are expected to flourish here.   (KNN Bureau)