Skip to content

How Karnataka’s new strategy aims at a strong economic revival

With the state now inching to a more economic downfall, the Chief Minister announced all establishments to run 24x7 to revive

The pandemic has caused much harm to many, needless to say, who and where and why it has been harm. The world has officially entered 2021, and; there are strict changes that have to take place. For example, a moribund global economy, a rising labor turnover, and many other indescribable events. As a global force, things are happening but at such a minute pace so negligible that we can fail to figure out what we are doing. So negligible that we can tend to forget that weight of the future in the hands of confused people struggling with the dilemma of power. The nations are adapting, and so should the minute minions that built the globe (1).

Irrespective of the damages that each country has faced, whatever may be the damages, it has to be repaired. Zooming into India, there are 29 bigger problems. Each state in India had been affected by the aftermath of the pandemic, only that the aftermath looked shallow and treacherous. At this point, many states are doing their very best to initiate a plan to revive their economy that is now dipping to the grave. When we say economy, the very first attribute goes to money, well NO. The economy of everything constitutes success, just like oil good enough to power up every gear and part of a vehicle for a smoother experience. In that way, the current scenario looks too pale for Indi as it progresses into its 70th year of constitutional entrance.

Zoom further, and we see a state that, unlike other states, turns towards modernity, uniqueness, a passion of difference and attitude, and a force of the growing economy. Karnataka has been a sensational chapter to the Indian economy. A driving force of employment and budding talent, a center of a boom and technological growth is what made Bangalore the IT hub of the world. Investors and global companies would throng here to figure out and select the next big bunch of talent. A state will unparalleled lifestyle differences compared to the others. The youth experience solidarity and youthfulness here more than anywhere else. Once the nation’s Garden city, it bloomed and blossomed to might and now shreds as time passed (2).

The pandemic did much damage to Karnataka, especially with the workforce sector that dims down. Chief Minister BS Yeddyurappa has pleaded for the community to engage in 24×7 service to revive their economy. A movement very well needed that could bring employment back to its core. This was essential as Karnataka faced difficult situations to manage their government-run operations like trains, buses, and much more. Even private operations like restaurants, movie halls, and public community areas were allowed to carry out their operations if needed 24×7. This move was widely appreciated, and they look forward to a new era for many shops and malls across the state.

Expanding 24×7: Feasible or not?

On Saturday, the Karnataka government signed an order enabling shops and shopping areas to be open 24×7, including malls and restaurants, stating the move was to ensure economic performance and revive the state’s economy. While restaurant owners had welcomed the news, owners of independent commercial establishments say that opening their stores round-the-clock would not be economically viable for them. Also, labor unions expressed concerns about women workers’ safety, particularly whether taking into account the existing system of controls and balances, workers’ rights would be prioritized. The President of the Bruhat Bengaluru Restaurant Owners’ Association said the government’s decision would help restaurateurs revive their businesses after the pandemic caused the losses. He said that the restaurant owners had decided to launch restaurants initially in commercial areas on Fridays, Saturdays, and Sundays to test consumer behavior (3).

“It is a positive development because it will bring in revenue and employment after the difficult situation of COVID-19 in the longer term. However, we have to consider how customers will embrace this because consumer patterns show that people do not go shopping after late evening unless there are special occasions or festivals. Besides that, many resources will be needed to keep the mall operating 24/7. Better planning by all owners and the authorities is certainly feasible,”

said Shashi Kumar, COO of brigade Group, Bangalore (4).

Retailers at stores along Church Street and Brigade Road in Bengaluru said the change wouldn’t assist such independent shops as they would have to hire more employees in shifts to keep the stores open 24×7. Retailers said that the business had reduced steadily throughout the last four years due to the rapid growth in e-commerce and the increased taxes due to GST.

On a shift basis, shops and commercial establishments employing ten or more people can continue to operate 24×7, according to the government order issued on January 2. All staff may work a maximum of eight hours per day, with working hours not exceeding two hours per day overtime. As long as they submit a letter of consent, women employees will be allowed to work night shifts. Establishments must also ensure the provision of facilities for women employees on night shifts to travel to and from the workplace. For larger establishments such as factories, these rules have also been in place (5).

The state government has also directed that there should be no more than eight hours of work for the staff. Staff members must be compensated for that and not be made to work for further than ten hours a day or more than two days a week and if additional work is required to be done. According to the Karnataka Shops and Establishments Act and the Karnataka Shops and Commercial Establishments Rules, the employer will have to face punishment and action in the event of any breach of this rule. It is only possible to allow women to work overtime between 8 a.m. 6 a.m. if they consent to the same thing themselves. Also, it will be the responsibility of their employers to ensure their safety at all times. Transport facilities will have to be provided for women who work in shifts. To provide them with proper restrooms, lockers, and other basic facilities, care will have to be taken. As indicated under the Payment of Wages Act, all workers’ wages, along with their overtime wages, will be deposited into their bank accounts (6).