Low Unemployment and Heavy Investment Strategy for Gujarat?

The latest reports of Ministry of Labour Government of India, projects Gujarat as least unemployment in country. This is also contrast to high investment opportunity being offered in the state. How sustainable would be investment in absence of labour shortage. Given the huge investment promises and related land utilization or intention to use 1000 ha of land for the projects in leiu of the employment where are the labour. There is feeling in the state that too much capital flow in absence of manpower, can spell disaster for the state. Given the migration flows, even declining from across the states in country, a huge rural-urban population shift has happened since 1991 till 2011 where is scope for further demographic adjustment in next decade. A urbanisation fueled by investment in infrastructure courtsey the JnNURM and UIDSSMT scheme the migration to cities from the rural hinterland has been rising high. Moreover there is talk of setting up the Special Investment Regions (12-13) in the state to serve the special economic zones and also to act as independent cities, where are the people? The government is invested a bit high on the much talked Dholera SIR, but prospects for the 'peopling' i.e., shifting of the people to these destinations seems to be weak. What than is the task ahead for the Government and industry investors given the shortage of labour as predicted by many? The over reliance on the external migratory tendency would be misjudged as too ambitious given the development projects, and investment happening in rapid pace in neighbouring Rajasthan, Maharashtra and Madhya Pradesh. Gujarat needs to look some where else to source labourer or the industry needs to be prepared for the high labour costs.

A big change in the income levels due to rise in investments and surplus for disposal in the developed districts of the state is indicator for the line of actions government should be ahering before its too late. Gujarat remains now less attractive given its falliability to eminent crisis in future. It would be interesting to revive the argument in the upcoming Vibrant Gujarat.