India needs to amend its labour laws. Not to destroy the weak safeguards that exist now but to strengthen them
High among the expectations from the avowedly industry-friendly government in Delhi is that it will muster the political will to “reform" labour laws to render these more flexible. The rigidities of the current labour regulatory regime, it is alleged, are major hurdles to attracting private investment to manufacturing. Greater freedom to hire and fire workers, a less intrusive labour welfare supervisory regime and reduced power of unions will, it is argued, benefit workers, as greater private investment will result in higher economic growth and therefore, more jobs.
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