Labourers in India Not Willing to Work Due to Welfare Schemes:

 * Labourers in India Not Willing to Work Due to Welfare Schemes:- L&T Chairman SN Subrahmanyan  

The Indian economy has long relied on a vast workforce of labourers, particularly in construction and infrastructure sectors. However, a recent statement by Larsen & Toubro (L&T) Chairman SN Subrahmanyan has sparked discussions about the impact of government welfare schemes on labour participation. According to him, a significant number of labourers are becoming reluctant to work, as they find financial security in government assistance programs. This raises important questions about the balance between social welfare and economic productivity in India.  

* The Concern Raised by L&T Chairman

Speaking at an event, Subrahmanyan pointed out that many workers, particularly in the construction sector, are opting out of employment because of various government welfare schemes. He suggested that these programs, which provide free rations, direct cash transfers, and other benefits, have reduced the incentive for daily-wage labourers to seek employment.  

L&T, one of India's largest infrastructure firms, has been facing a shortage of skilled and unskilled labour, which has affected project execution timelines. Subrahmanyan emphasized that while welfare measures are necessary for social security, they should not create a situation where work becomes unattractive for able-bodied individuals.  

* Government Welfare Schemes and Their Impact 

India has numerous welfare programs designed to support low-income groups. Some of the key ones include:  

a.PM Garib Kalyan Anna Yojana (PMGKAY):- Provides free ration to millions of people, ensuring food security.  

b.Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):- Guarantees 100 days of paid work to rural households.  

c.Direct Benefit Transfer (DBT) Schemes**:- Transfers cash directly to beneficiaries, reducing dependence on middlemen.  

d.Subsidized Housing and Healthcare:- Government programs offer affordable housing, free healthcare, and other social security benefits.  

While these schemes have reduced poverty and improved living conditions, some experts argue that they have discouraged active workforce participation in low-paying manual jobs.

* The Changing Attitude of Labourers  

With increased financial security through welfare schemes, many labourers prefer short-term, flexible work or choose to stay in their villages rather than migrate for construction jobs. There are several reasons behind this shift:-  

1. Security Over Hardship:- Labour-intensive jobs in construction, agriculture, and manufacturing involve long hours and tough conditions. If basic needs are met through welfare, many choose not to take up physically demanding work.  

2. MGNREGA as an Alternative:- Instead of migrating to cities for uncertain jobs, rural workers prefer MGNREGA, which provides wages without displacement.  

3. Better Livelihood Options:- Some labourers are shifting towards small-scale businesses, farming, or gig work, rather than depending on daily wage jobs.  

* Industry Impact and Challenges  

The reluctance of labourers to take up work has led to labour shortages in key sectors like construction, manufacturing, and logistics. Large companies, including L&T, are struggling to find enough workers to meet project deadlines. This, in turn, affects economic growth and infrastructure development.  

* Possible Solutions 

1. Skill Development Programs:- Instead of just relying on welfare, the government can invest more in vocational training to create a skilled workforce.  

2. Higher Wages and Better Work Conditions:- Employers need to improve wages, provide better housing, and ensure worker safety to attract labourers.  

3. Reforming Welfare Schemes:- Instead of direct cash transfers, linking benefits to skill-building and employment programs can encourage productivity.  

* Conclusion  

While welfare schemes play a crucial role in reducing poverty and ensuring basic necessities, they should not discourage people from working. A balanced approach, where welfare is combined with skill development and job opportunities, is essential for India’s economic growth. The concerns raised by L&T’s chairman highlight the need for policy adjustments that encourage both social security and workforce participation.