Along with France, India has some of the most cumbersome labour laws in the world.
For instance, several sectors (including soft toys) were originally reserved for the small scale sector.
Any manufacturing facility with more than a few hundred employees, has a huge difficulty in reducing its staff when business goes down.
The unions are typically controlled by some political parties and their "Gunda's" and do not really serve the average labour.
Many of these ideas have been taken from the communist countries, but if we look at even communist countries like China, these ideas are no longer applied there.
The result? Investment into manufacturing in China has been many times more than that in India. (they export more soft toys than our total exports!) China today employs more labour in a very large and truly gainful manufacturing sector, and the labour are now getting a better welfare than their counterparts in India.
If we want to really provide employment to a large number of young people of India, services and IT sector will never be able to absorb the vast population of India. India needs to have a thriving manufacturing sector, which needs to be freed from the Bureaucratic red tape and allowed to flourish.
To free this entrepreneurial energy and spirit, the labour laws need to be based on a simple principle - a company employing labour is doing a service to the society, and the nation. In good times, it does not make good business sense for a company to fire a competitive and trained employee. Let them do it when they need to.
Their can be alternate means to protect such labour, and provide them welfare. Especially, if the Industry thrives, and taxation is high, and the government is focussed on providing the welfare, there is no point dragging below a company from its competitive advantage globally.
For instance, several sectors (including soft toys) were originally reserved for the small scale sector.
Any manufacturing facility with more than a few hundred employees, has a huge difficulty in reducing its staff when business goes down.
The unions are typically controlled by some political parties and their "Gunda's" and do not really serve the average labour.
Many of these ideas have been taken from the communist countries, but if we look at even communist countries like China, these ideas are no longer applied there.
The result? Investment into manufacturing in China has been many times more than that in India. (they export more soft toys than our total exports!) China today employs more labour in a very large and truly gainful manufacturing sector, and the labour are now getting a better welfare than their counterparts in India.
If we want to really provide employment to a large number of young people of India, services and IT sector will never be able to absorb the vast population of India. India needs to have a thriving manufacturing sector, which needs to be freed from the Bureaucratic red tape and allowed to flourish.
To free this entrepreneurial energy and spirit, the labour laws need to be based on a simple principle - a company employing labour is doing a service to the society, and the nation. In good times, it does not make good business sense for a company to fire a competitive and trained employee. Let them do it when they need to.
Their can be alternate means to protect such labour, and provide them welfare. Especially, if the Industry thrives, and taxation is high, and the government is focussed on providing the welfare, there is no point dragging below a company from its competitive advantage globally.
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