Private security industry is indeed a sunrise sector, with potential to be the second-largest employment generator and a major source of revenue for the exchequer by way of taxes.
G4S proposes some key regulatory reforms which will be beneficial for the growth of the sector:
· Increase in FDI limit
· Simplified taxation policy
· Categorization of private security guards as skilled and highly skilled workers under the minimum wage act
· Increase in FDI limit: While globally economies are opening up and welcoming FDI by relaxing norms, in India, in the security sector, the Government has reduced FDI from the earlier 100 % to current 49% by introducing PSARA. While PSAR Act is needed to regulate the sector, amendments conducive to industry & investment are required to make the act beneficial for all entities. Increase in FDI limit in security services could increase interest of global security players in the country. This will allow access to foreign expertise for dealing with new challenges and access to modern technology, which will set better benchmarks in terms of employee welfare.
· Simplified taxation policy- There are expectations that the government may rationalize tax slabs under the impact of a slowing economy and high interest rates. This will further help to revive growth in various sectors. It is imperative that the forthcoming Budget recognizes fair taxation policies that are at the core of addressing inequality in the country.
· Categorization of private security guards as skilled and highly skilled workers under the minimum wage act- Categorization of private security guards as skilled and highly skilled workers under the minimum wage act will definitely give due consideration to them. If applied, it will bring in suitable policy where private security guards will be considered in a totally fresh category which is not aligned to the minimum wages.
By G4S India