India Inc: Move boon for labour-intensive sector
India Inc welcomed Prime Minister Narendra Modi’s initiatives to bring in labour reforms, viewed by many as a major stumbling block towards doing business in the country efficiently.india Updated: Oct 17, 2014 01:20 IST
India Inc welcomed Prime Minister Narendra Modi’s initiatives to bring in labour reforms, viewed by many as a major stumbling block towards doing business in the country efficiently.
“What Mr Modi has said today is very welcome as labour laws is one issue that scares many foreign companies and reforming it will solve a host of problems,” said RC Bhargava, chairman, Maruti Suzuki India Ltd.
As part of the reform process, the inspection of businesses will be made more transparent.
“This is encouraging and most importantly, the measures will help in ease of doing business particularly in labour intensive sector,” said Kiran Mazumdar Shaw, chairman
and managing director, Biocon.
The lack of flexibilty in employing labour has led to a burgeoning class of contract workers that has further complicated the landscape. The industry has for long been demanding that laws need to be amended to account for seasonality of businesses.
Ficci said the reforms announced are aimed at removing ‘Inspector Raj’, simplifying compliances by consolidating returns. The measures taken would also bring in accountability, stressing on skill development, by overhauling ‘Apprenticeship System’.