The Apex Chamber of Commerce and Industry has demanded to link the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) with the industry.
Chamber president PD Sharma in a letter to textile minister Kavuru Sambasiva Rao said, “MNREGA is taking a toll on industrial production and ever since the scheme began the industry was facing shortage of labour and the cost of labour has gone very high.”
He said that the country was facing an economic crisis and the industry could reduce it woes by reducing labour cost. He added that it was high time that MNREGA was linked with the industry.
“At a time when we need more exports, we are allowing exports to decrease due to our own mistakes. The share of textiles exports in our total exports has fallen from 11.53% in 2008 to 8.8% in 2013.
The reason is high wage cost which is double of that in Vietnam and Bangladesh. Indian wages are comparable with those of China although the productivity of China's labour is much higher. Moreover China's per capita income is three times that of India's,” he expressed.