Eastern states can leverage Covid lockdown into an opportunity


Published On: Sunday, May 10, 2020 | By:

Eastern states can leverage Covid lockdown into an opportunity

Every entrepreneurial decision is made on a cost-benefit analysis and there is always a point from where a business strategy that appeared impractical and risky begins to look appealing. The disruption caused by the coronavirus pandemic could be one such point, for the states like Orissa, Bihar, Jharkhand etc.provided these states that supply much of the migrant labour to industries in states like Tamil Nadu, Andhra Pradesh, and Karnataka have the foresight and political will to reform their industrial environment. It is evident from many accounts that many migrant workers who have fled to their home states will not return.

Even if they do, they would be unwilling to travel very long distances in search of work. Many of those have picked up shop floor skills, have worked in global supply chains, and are familiar with the requirements of the market. This pool of workers would be available in poor and industrially backward states such as Orissa, Bihar Jharkhand, etc. These states are blessed with land and abundant water sources, which are necessary for the industry.

This conjunction of the availability of a pool of trained labour, cheap land, and socio-economic change offers an opportunity for the third factor - capital - to flow to these largely untapped regions. It is imperative that this happens for India's economic prosperity. It would, however, not be possible to convince entrepreneurs and industrialists from the industrialised states unless the state governments concerned to show the willingness and to sort out law and order. They would also need to empower local governments so that they can facilitate setting up of industries and offer local support and protection to men and material.

Diversification of industry eastwards would not only create jobs but would also fuel demand for services.

Source: economictimes.indiatimes.com

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