Narendra Modi
Twitter mocks Narendra Modi with #PoMoneModi after he compares Kerala to Somalia. Pictured: Narendra Modi [Representational Image]Reuters

India will allow private companies to hire new employees based on their performance in government job examinations, Prime Minister Narendra Modi said at an event in New Delhi, the Mint reported. 

The initiative will help private sector cut cost on the recruitment process and focus on creating a better work ecosystem. 

A host of examinations in the country, such as the Common Aptitude Test (CAT), Joint Entrance Examination (JEE) and Common Entrance Test (CET), have already set a benchmark of standards to select students. Similarly, the public sector banking examinations have been at the forefront of hiring new recruits. 

The prime minister said the results of such government tests could extend to help private sector recruitment. "I am happy to announce one more measure to improve the labour market and benefit the unemployed," he was quoted by the daily. 

The government and public sector undertakings conduct a number of recruitment examinations in the country. The scores in these examinations are retained by the government. However, Modi proposed that hereafter the results will be made available to all employers with the consent of the candidate.

"This will create a positive externality. It will provide a rich data base which can be used by private sector employers as a ready-made and objective sourcing and screening mechanism," he added. "It will reduce search costs in the labour market for both employers and employees. It will enable better matching of candidates from labour surplus areas with jobs in other regions."