What it means to be a HR leader in a liberalised economy

In 1991, as India dismantled its protectionist economic framework, the tremors were felt far beyond stock markets and trade corridors. They rippled through HR departments, then seen largely as personnel offices—paper-heavy, rule-bound, and peripheral to strategy.

Three decades later, the picture could not be more different. HR leaders now sit at the boardroom table, their remit stretching from compliance to culture, from workforce planning to AI-enabled talent analytics. In the liberalised economy, people are not just a cost to manage—they are a competitive asset.

Liberalisation also ushered in multinational corporations, foreign direct investment, and global supply chains. Domestic firms suddenly had to compete with international brands for market share—and for talent.

According to NASSCOM’s 2024 report, demand for strategic HR roles in India grew 37% over the past decade, reflecting the profession’s deeper involvement in decision-making. Talent mobility exploded: Indian professionals took on overseas roles, global companies offshored critical functions here, and cross-border teams became the norm.

But this mobility brought volatility. In the Indian IT sector, voluntary attrition hit 25% in peak hiring years (TeamLease, 2023). The HR challenge shifted from simply recruiting to building retention ecosystems—balancing competitive pay with career development, wellbeing, and purpose.

The Skills Shift

In a liberalised market, tenure no longer guarantees progression—skills do. Emerging industries like AI, green energy, and data science have intensified the hunt for specialised expertise. The 2024 India Skills Report finds 54% of employers struggling to source candidates with future-ready capabilities.

Forward-looking organisations are investing in continuous learning frameworks. Tata Steel’s Capability Development Framework, for instance, ties career progression directly to skill acquisition—an approach unthinkable in the pre-liberalisation era.

Liberalisation didn’t simplify HR’s regulatory landscape—it made it more complex. Indian labour laws remain intricate, and now global compliance standards add another layer. Data privacy rules (like GDPR), ESG reporting, and anti-discrimination mandates in multiple jurisdictions have become part of HR’s daily reality.

The pending rollout of India’s consolidated Labour Codes is set to modernise employment law, but industry bodies like FICCI and CII warn of a delicate balance between easing business and protecting workers. HR will be pivotal in managing this transition.

Cultural Convergence

Perhaps the most intangible shift has been cultural. Liberalisation brought diversity into workforces—not just gender and background, but mindset. Western management practices entered Indian boardrooms, while Indian talent brought its own adaptability to global teams.

Infosys’s Global Delivery Model illustrates this balancing act: processes are standardised for efficiency, yet adaptable to local cultural nuances. HR’s role here is part diplomat, part strategist.

The New HR Playbook

1. Talent as a Market Asset – Quantifying people ROI is now as vital as tracking EBITDA. Metrics like employee lifetime value are boardroom talking points.
   
   

2. Lifelong Employability, Not Lifetime Employment – Job security now comes from relevance. HR must enable reinvention at scale.
   
   

3. Wellbeing as a Competitive Advantage – With global benchmarks, ignoring mental health, flexibility, or inclusion is no longer viable. A 2024 Deloitte survey found 62% of Indian employees would switch jobs for better wellbeing support.
   
   

4. Governance Beyond Borders – Multinational HR must navigate Indian labour law alongside global compliance regimes.
   
   

The next wave will be defined by AI integration, sustainability imperatives, and intensified global talent flows. HR leaders in India will need to be fluent in behavioural science, data analytics, and international governance—while retaining the ability to connect with the human core of the workforce.

If 1991 taught Indian HR how to compete, the decades ahead will test its ability to lead—not just locally, but on the global stage.