Narendra Modi’s labour reform push may remove key hurdle for investors
5 years, 3 months ago

Narendra Modi’s labour reform push may remove key hurdle for investors

Live Mint  

Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labor laws to attract investment and make it easier to do business in a country where changing archaic rules is a challenge for any government. “It’s a positive signal of reforms agenda as well as a step toward making India attractive, in the context of the golden opportunity of manufacturing shift from China,” said Gautam Chhaochharia, a strategist at UBS Group AG in Mumbai, adding over the medium term it might change the way companies hire and fire. Modi’s cabinet on Wednesday approved the Industrial Relations Code bill, which empowers the government to change the ceiling on employee count for a company to retrench workers without government approval. “It’s a dangerous move.” The four codes that are being created by merging various laws, some of which date back to 1950s, are wages, industrial relations, social security, and occupational safety, health & working conditions.

History of this topic

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