New Delhi: Larsen & Toubro (L&T) chairman SN Subrahmanyan has once again found himself at the centre of controversy, this time over remarks about labour shortages in India. Speaking at the CII’s Mystic South Global Linkages Summit 2025 in Chennai, he claimed that government welfare schemes are making workers reluctant to relocate for jobs in the construction sector.
According to Subrahmanyan, government-backed initiatives like MGNREGA, direct benefit transfers, and Jan Dhan accounts have affected labour mobilisation, as workers prefer the comfort of their hometowns. He expressed concern that this trend could impact the infrastructure development in the country. “Labour is not willing to move for opportunities. Maybe their local economy is doing well, maybe it is due to various government schemes,” he said.
Rising attrition in the construction sector
Highlighting the growing challenges in labour recruitment, Subrahmanyan noted that while L&T requires 4 lakh workers, it hires 16 lakh annually due to high attrition rates. He also pointed out that wages in India are significantly lower than in the Middle East, where workers earn 3 to 3.5 times more, further exacerbating the labour shortage.
L&T is a multinational conglomerate engaged in engineering, construction, manufacturing, technology, and financial services. As one of India’s leading infrastructure firms, it specialises in executing large-scale projects across sectors like airports, roads, bridges, and power plants.
Subrahmanyan also observed that reluctance to relocate is no longer limited to blue-collar workers but extends to white-collar professionals as well. “When I joined L&T as a graduate engineer, my boss sent me from Chennai to Delhi. Today, if I ask an employee to relocate, they refuse. It’s a different world of work today, and we need to rethink HR policies,” he said.
Controversy over work-life balance
The L&T chairman’s latest comments come just weeks after he faced backlash for advocating a 90-hour work week. His statement sparked widespread debate on work-life balance, drawing criticism from industry leaders and politicians alike.
“I regret I am not able to make you work on Sundays. If I can make you work on Sundays, I will be more happy, because I work on Sundays,” Subrahmanyan told staff. “What do you do sitting at home? How long can you stare at your wife?” he asked. “Come on, get to the office and start working.”
