4 min read.Updated: 04 Jun 2019, 12:21 AM ISTManish Sabharwal,Sumita Kale
India needs another round of Ease of Doing Business reforms to create more formal non-farm jobs and ease rural distress
Writer C.S. Lewis said, “You can’t go back and change the beginning but you can start where you are and change the ending." Indian farmers are poor because they have too many colleagues and the productivity programmed into these 45% of our workers generating 14% of our gross domestic product (GDP) represents a perpetual condemnation to poverty. However, the migration of our farm labour to non-farm jobs is held back by massive regulatory cholesterol for formal non-farm job creation; emphasizing “formal" is important here because many policy pundits still fight yesterday’s war of unemployment while our labour force has moved on to face its fight for higher wages. Higher wages need formal enterprises and formal employment whose breeding needs another round of Ease of Doing Business reforms, or EODB 3.0; a bold, targeted and time-bound reduction of regulatory cholesterol that plagues all formal employers but is particularly painful for new and small ones.