Dear Ganesh,
Absenteeism is the bane of the Indian industry. It poses a big challenge to HR personnel. If not tackled, it can be a big headache. First and foremost, find the main causes of absenteeism, whether it is because of family-related issues, personal illness, religious reasons, stressful job, or simply one's careless attitude or mentality. Once this is identified, go about tackling the issues in the best way possible.
Another way to reduce absenteeism is to reward employees with both monetary and non-monetary benefits for 100% attendance and, when required, provide counseling facilities to help overcome problems leading to absenteeism. Additionally, train employees to do their jobs correctly so that they enjoy their work and encourage them to be involved in decision-making, thereby empowering them and making them feel important, needed, and valued. This approach should hopefully work.
Good luck.
Regards,
RGS.