Labour troubles might hamper India’s plan for worldwide small car center

India’s main aim currently is to become the international car center but this aim could be hindered by certain labour issues. These labour issues include lack of skilled workers along with slow tempo of development by auto component manufacturers.According to the reports, India’s aim to be the international small car manufacture base has some severe labour problems, as there is less of skilled workers, pretty low working efficiency, sky high labour cost and super low productivity, which is not impressive at all. And these labour problems are all-pervading in India. In addition to this, the local political parties keep on interfering in the business operations.

Another thing is that, the labour unions use their political influence to encourage manual labour than machinery use in Indian manufacturing plants, which in turn will increase more employment opportunities. But the bad effect of this is that it gives birth to greater inconsistency in quality, longer manufacturing cycles and finally more money outgo.

As far as the labour efficiency is concerned India ranks quite low on the World Economic Forum’s Global Competitiveness Index 2010-2011. India stands on 92th position amongst the 139 nations.Some of the well-known car manufactures, such as General Motors and Hyundai are also facing labour unrests, which is not good for the manufacturers at all. Even Maruti India also faced a terrible labour problem as workers 13 day long thump at Manesar plant of Maruti just ended a few days back.

Indian Auto Market is currently buzzing with small cars, which are actually appreciated by people in the country. If figures are taken into account, there is a lack of around 3 Lakh skilled workers.

Another major cause of lack of skilled manpower is that even India has a large population, but a large chunk of people are not actually fit to do jobs, so this causes lack of skilled manpower. Even biggies of the Indian car market, such as Tata Motors and Honda India feel that India need not be afraid to create big capacity plants. However, it is a known fact that India doesn’t have adequate power, but still India will have to put more efforts. According to the grapevine, during the 12th 5 year plan on infrastructure, Indian government plans to invest around $1 trillion to solve this labour problem.