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

• 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 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, as said by PM.
• 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.