Guwahati: Opposition MLAs in the Assam Legislative Assembly on Monday, July 7, 2026, raised significant concerns regarding the adherence to local hiring mandates by industries that receive state incentives, prompting Industries Minister Bimal Borah to reiterate the government’s commitment to job creation for local youth. The minister affirmed that existing rules require these incentivised industries to fill at least 80 per cent of managerial positions and 90 per cent of unskilled roles with local hires.
The heated exchange unfolded on the opening day of the Budget Session, highlighting persistent tensions between the state’s industrial promotion policies and its stated goal of ensuring employment opportunities for the indigenous population. The debate underscores the government’s challenge in balancing investment attraction with local empowerment, a critical issue for the state’s economic and social fabric.
What was announced
During the Budget Session of the Assam Legislative Assembly on July 7, 2026, AIUDF MLA Badaruddin Ajmal initiated a discussion under Rule 53, pressing the state government for details on local youth employment in industries benefiting from state incentives. Ajmal alleged that despite substantial financial support from the government, including GST reimbursement, power subsidies, stamp duty waivers, and interest subsidies, many industrial units were predominantly employing workers from outside Assam. He cited figures suggesting that approximately 60 per cent of the workforce in these incentivised industries originated from other states, urging a serious government investigation into the matter.
In response, Industries Minister Bimal Borah affirmed the government’s seriousness about the issue, stating that the core rationale behind offering industrial incentives is to generate jobs for local youth. Minister Borah reiterated that current regulations mandate industries to ensure at least 80 per cent local employment in managerial positions and 90 per cent in unskilled categories. Speaker Ranjeet Kumar Dass also intervened, requesting Minister Borah to implement periodic verification to ensure industries comply with these local hiring guidelines.
Why it matters
The debate in the Assembly underscores the critical importance of local employment generation in Assam, particularly in a state striving for industrial growth while addressing unemployment among its youth. The state’s incentive policies are designed not just to attract investment but also to ensure that the benefits, primarily in the form of jobs, accrue to the local population. Non-compliance by industries could undermine public trust in government policies and exacerbate local unemployment issues, potentially leading to social and economic disparities. The commitment to local hiring is a cornerstone of inclusive industrial development, aiming to uplift the state’s human capital.
Ensuring that a significant percentage of jobs, especially in managerial and unskilled categories, are reserved for locals is vital for the economic empowerment of Assam’s youth. The incentives provided by the government, such as GST reimbursement and power subsidies, represent a substantial investment of public funds, and the expectation is that these investments translate directly into tangible benefits for the state’s residents.
Background
Assam has a longstanding policy framework aimed at promoting local employment within its industrial sector. The “Industrial and Investment Policy of Assam, 2019,” which was effective for a period of five years from September 1, 2019, to August 31, 2024, explicitly stipulates local hiring mandates. This policy required industrial units to employ a minimum of 80 per cent people of Assam in the managerial cadre and at least 90 per cent in the non-managerial cadre.
Even prior to the 2019 policy, similar provisions existed. The Industrial Policy of 2003 also mandated the employment of 80 per cent people of Assam in managerial positions and 90 per cent in non-managerial roles, with a further expectation to increase this to 90 per cent and 100 per cent respectively within five years of commercial production. These policies reflect a consistent state objective to ensure that industrial development directly benefits the local populace. The government also introduced an incentive of Rs. 10,000 for employers against each local youth employed, as announced in the 2019-20 budget speech, to further encourage local hiring.
The current Budget Session of the 16th Assam Legislative Assembly commenced on July 6, 2026, and is scheduled to run until July 31, 2026. The state budget for the financial year 2026-27 is slated for presentation on July 10. The session has already seen discussions on various public interest issues, including power outages and declining enrolment in government schools, with opposition parties staging walkouts over rejected adjournment motions.
Key details
The core of the state’s local hiring policy, as reiterated by Industries Minister Bimal Borah, mandates specific percentages for local employment in incentivised industries. These industries are required to fill:
- Eighty per cent (80%) of managerial positions with local hires.
- Ninety per cent (90%) of unskilled roles with local hires.
These stipulations are part of the broader “Industrial and Investment Policy of Assam, 2019,” which aims to foster inclusive industrial growth and create gainful employment for the state’s residents. The policy also includes various fiscal incentives for eligible units, such as State Goods and Service Tax (SGST) reimbursement, power subsidies, stamp duty reimbursement, and interest subsidies on working capital loans.
Additionally, the government had introduced a one-time incentive of Rs. 10,000 to employers for each local youth employed, a measure included in the 2019-20 budget and incorporated into the 2019 Industrial Policy. This incentive was applicable for a period of five years from September 1, 2019.
Reactions
“These industries are receiving huge amounts from the government as incentives, but the employees in these industries are from outside the state,” AIUDF MLA Badaruddin Ajmal alleged during the Assembly session. “According to available information, around 60 per cent of the employees are from outside the state. The government should look into the matter seriously.”
In response, Industries Minister Bimal Borah stated, “The state government is serious about the issue of providing employment to local youth. The primary purpose of providing incentives to the industries is engagement of local youth in them.”
Speaker Ranjeet Kumar Dass also urged Minister Borah to “ascertain from time to time whether the industries are providing employment to local youth as per guidelines.”