Confident that the next 25 years will belong to India, Hero MotoCorp chairman Pawan Munjal on Thursday said land and labour reforms are vital to boost the manufacturing sector.
“Land and labour reforms are very, very important for the industry, for manufacturing. Right now, both are inconsistent. For expansion, it is so difficult to get land. For expanding manufacturing, the capacity in labour is extremely important. There are lots of issues... these two are very important,” Munjal said at the India Economic Summit, jointly organized by the World Economic Forum and the Confederation of Indian Industry, in New Delhi.
Commending the efforts made by Prime Minister Narendra Modi’s government for improving the ease of doing business, Munjal, who is also managing director and chief executive of Hero MotoCorp Ltd, the country’s largest two-wheeler manufacturer, said the economy is changing in a positive way.
“Going forward, to my mind, the efforts required (by the government) are happening. I’m very confident that the next 25 years are going to be India’s years,” he said.
He said the government should come out with a roadmap for the next 5-10 years on issues such as infrastructure and employment, in order to offer a clear direction to the industry, which otherwise has to depend on the budget announcements every year for such policy directions.
On the other hand, Tech Mahindra Ltd vice-chairman Vineet Nayyar said the trickle-down effect that had been expected has not happened. The IT industry saw dramatic growth, but sectors like agriculture have been neglected and growth has been “edgy”, he added. The performance of garments and the textile sector has also gone down. Bangladesh, which is half the size of West Bengal, now exports double the garments that India does, Nayyar said.
CII president Naushad Forbes said India needs to concentrate on reforms in education and healthcare to further drive growth. “I’m worried about these voices coming out from around the world worrying about internationalization and globalization,” he added.