The proposed strike by Indian workers’ unions on Friday will be the first big labour unrest for the government of Prime Minister Narendra Modi, which has taken up a series of economic reforms to boost growth and fight global slowdown. To pre-empt the strike, Modi’s Finance Minister, Arun Jaitley, on Tuesday announced a hike in minimum wage of unskilled non-agricultural labourers — a gesture immediately rejected by the unions, saying the increase is less than half of what they have been demanding.
Economic reforms in a large nation like India is a tightrope and governments take their own time to learn how to balance aspirations of the business class and workers’ grievances. The Modi government has little experience in handling mass labour unrest and is going through a learning curve. Not surprisingly, the hike in wages is seen as a knee-jerk reaction to the unions’ threat to strike.
Second, the unions are demanding that the government stop seeking foreign investments in railways, defence and insurance sectors — some of the biggest public-sector employers in India. If the unions remain adamant, the strike can effectively paralyse banks, government offices and factories all through India.
Decisive election victories lead to a disproportionate surge of aspirations and expectations — of both business and working class — from the incoming government. This is exactly what has happened to Modi who led the Bharatiya Janata Party (BJP) to an impressive majority in 2014, a first for any single party in the last three decades in India. However, once the euphoria subsides, the victor has to prepare a roadmap for governance, keeping in mind both long and short-term challenges and promises. It appears that Modi was more keen on making his presence felt on the world stage than addressing simmering discontent among various socio-economic groups within the country. In the last two years, two states governed by the BJP have seen widespread protests — Patels in Gujarat and Jats in Haryana. Both the communities, relatively well-placed in terms of financial status and social hierarchy, are demanding affirmative action.
While Modi has been prompt in addressing the concerns of the industry and business lobby, it appears he has had little time for the working class. Modi belongs to a breed of politicians that firmly believes in a trickle-down effect — open up economy, bring in foreign investment and the ensuing growth will benefit all. This may be true for smaller economies, but not for a nation as large and diverse as India. For a wider impact and wholesome development, the fruits of economic reforms must reach all sections of the Indian society.
