India's problem is not rigid labour laws but the lack of enforcement of existing protection for workers
Indian industry continues to chaff at the government’s failure to introduce what it calls labour reforms. I find the term “reform" here disingenuous, because what is sought is not a better deal for labour but rather further weakening of the already infirm framework of labour regulation in our country. In a recent article in The Guardian, Leo Panitch notes, “For most of the 20th century, the word ‘reform’ was commonly associated with securing state protection against the chaotic effects of capitalist market competition. Today, it is most commonly used to refer to the undoing of these protections."