Gujarat: Industry backs ONOE proposal, links repeated elections to estimated Rs 12000-Rs 15000 crore annual loss
Ahmedabad, May 25
Gujarat's industrial sector, including its textile manufacturing base in Surat, faces an estimated annual production loss of Rs 12,000-Rs 15,000 crore due to repeated election cycles and the resulting large-scale migration of migrant workers, industry leaders said on Monday.
This follows after consultations held in Gujarat by the Joint Parliamentary Committee (JPC) examining the proposal for "One Nation, One Election" as part of its wider stakeholder outreach across states.
The committee, chaired by BJP MP P. P. Chaudhary, has been conducting multi-state consultations to assess the feasibility of synchronising Lok Sabha, State Assembly, and other elections across India.
The panel is examining the Constitution (129th Amendment) Bill, 2024, and associated legislative proposals to enable simultaneous elections nationwide.
During the Gujarat leg of the consultations, state officials, legislators, and industry stakeholders participated in discussions with the committee.
Public statements made during the visit indicated that economists and policymakers have previously estimated that simultaneous elections could save up to Rs 7 lakh crore and improve administrative efficiency and GDP growth.
During an interview with IANS, Pathik Patwari, Chairman of the Indian Chamber of Commerce (Gujarat chapter) and former president of the Gujarat Chamber of Commerce and Industry (GCCI), said the state's manufacturing economy is structurally dependent on migrant labour from several states, and that repeated elections create recurring disruptions in workforce availability.
"Official estimates place migrant workers in Gujarat at around 30 lakh, while industry-level assessments suggest the figure could be as high as 40-45 lakh. These workers primarily come from Uttar Pradesh, Bihar, Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, and West Bengal," he said.
The workers are engaged across skilled and semi-skilled manufacturing roles in textiles, chemicals, pharmaceuticals, diamonds, and emerging sectors such as semiconductors and automobiles.
"Gujarat is a manufacturing state and a major exporter of pharmaceuticals, chemicals, textiles, diamonds, and now also semiconductor and automobile-linked industries," Patwari said, adding that labour mobility linked to elections creates recurring production disruption across industrial clusters.
Explaining the operational impact, Patwari said that although voting is conducted in a single day, the migration cycle extends significantly.
"The election might be for one day, but workers travel around 15 days in advance and return after about 15 days," he said, noting that industrial production is affected for nearly a month during each election cycle.
He estimated that industrial output declines by around 15-20 per cent during these periods, adding that "while the disruption is temporary, it recurs multiple times due to staggered local body, state and national elections".
He also noted that Gujarat's Gross State Domestic Product (GSDP), estimated at around Rs 27.9 lakh crore, reflects the scale of economic contribution that gets disrupted during these cycles.
"Overall economic impact is not formally tracked in a consolidated manner because it includes both tangible and intangible losses, but industry estimates indicate significant productivity reduction during election-linked migration periods," he said.
Explaining the four-five production clusters, he said: "Ahmedabad is concentrated in pharmaceuticals, chemicals, textiles, and construction; Rajkot in engineering; Jamnagar in brass manufacturing; Morbi in ceramics; South Gujarat in textiles; and the western region in fisheries and blue economy-linked activities."
He emphasised that these interconnected clusters depend heavily on migrant labour, making production sensitive to workforce disruptions during election periods.
Referring to the economic impact, he estimated that repeated election cycles lead to an overall annual loss of Rs 12,000-15,000 crore for Gujarat's industries, based on cumulative productivity decline and extended labour absenteeism across sectors.
Separately, a member of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) provided sector-specific details on Surat's textile economy, identifying it as the most affected industry due to its high dependence on migrant labour.
The SGCCI representative said Surat's textile industry alone has a monthly production scale of approximately Rs 8,000 crore.
Based on this, he estimated that election-related migration results in a productivity impact of around 15 per cent, translating into a monthly output loss of about Rs 1,200 crore during affected periods.
"On average, around 15 per cent of production is impacted during election cycles," he told IANS, adding that although elections occur for a single day, workers typically remain away for nearly a month due to travel and family obligations in their home states.
The SGCCI, a 1940-established apex trade body representing more than 13,000 direct members and over a lakh indirect members, has been among the key industry institutions engaged in consultations with policymakers on electoral synchronisation.
He further detailed that Surat's textile sector employs around 15 lakh migrant workers, largely from Uttar Pradesh, Bihar, Jharkhand, Odisha, and West Bengal.
"While Surat also has diamond and chemical industries, textiles remain the most labour-intensive segment and therefore face the highest disruption," he said.
According to him, Surat's textile ecosystem includes around 22,000 weaving units, 400 processing houses, approximately 20 spinning units, about 20 yarn units, nearly 250 knitting units, and 2,000-2,500 garmenting units, with weaving and processing being the most labour-intensive segments.
He also noted that the diamond industry in Surat employs an estimated three lakh migrant workers, but is comparatively less affected due to differences in production structure and workforce distribution.
Industry representatives further said that repeated election cycles also result in administrative slowdown due to the enforcement of the Model Code of Conduct, during which policy decisions, subsidy disbursements, land approvals, and industrial clearances are often delayed for weeks or months.
"Such delays increase interest costs, postpone investment decisions, and affect industrial expansion timelines," they said.
Patwari added that election periods also disrupt government functioning due to the deployment of administrative personnel for election duties across districts and states.
The broader discussions during JPC consultations in Gujarat included submissions from industry bodies and policymakers on the feasibility of synchronised elections.
Parliamentary committee discussions have also referenced projections in public policy debates, suggesting that a shift to simultaneous elections could reduce administrative expenditure and improve governance efficiency, though estimates vary depending on methodology and assumptions used.
— IANS
Reader Comments
While I understand the economic logic, I'm worried about the democratic implications. One nation one election sounds good on paper, but will it give too much power to the ruling party? Imagine if a state government falls halfway - then what? We need more debate on this.
Great analysis by industry leaders. The model code of conduct delays clearances, which affects our expansion plans. As a small businessman, I can tell you that every month of delay increases our interest costs. If ONOE can streamline this, why not give it a try?
From an expat perspective, this makes sense. In the US, elections are fixed every 4 years, and businesses plan around that. India's constant election cycle must be chaotic for industry. The savings of ₹7 lakh crore they mention is mind-boggling.
But what about the workers? They have family obligations back home. Elections give them a chance to vote AND visit their villages. It's not just about industry profits. We need to balance economic efficiency with democratic participation and personal rights.
The fact is, repeated elections cost us all. I've seen how my cousin's factory in Morbi suffers every time elections happen. The ceramics industry there is totally dependent on migrant workers. Something needs to change. ONOE seems like a practical solution.
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.