India's biz reputation at risk as states push laws to make firms hire local

Millions of jobs were lost during last year's nationwide lockdown, dealing a blow to govt's promise of generating adequate employment for the world's youngest and biggest workforce

A short drive from the capital of New Delhi, Gurugram has become one of India’s wealthiest cities with business-friendly policies that have attracted multinationals such as Alphabet Inc.’s Google, PepsiCo Inc. and Nestle India Ltd. But suddenly that reputation is at risk.

A slowing economy and a dearth of new jobs has prompted northern Haryana state, where Gurugram is located, to implement a new law last month that limits private companies from hiring workers from other states. Passed by a government controlled by Prime Minister Narendra Modi’s ruling Bharatiya Janata Party, such laws are quickly becoming popular with other states.