Saturday, October 24, 2020
Business

Views: After decades of underemployment and underproduction, India has true labour reforms

Views: After decades of underemployment and underproduction, India has true labour reforms
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For decades, we have preferred an economic system that delivers underemployment, while promising a wholesome paternalistic State. For once, India is getting its act together for economic take-off.

Synopsis

India once had high hopes from manufacturing. It was supposed to be the mainstay of employment for the country. And yet, the manufacturing sector mostly ran out of steam in the early 1970s and 1980s, particularly in the case of textile. Instead, countries like Vietnam and Bangladesh simply overtook us in textile exports.

By Varun GandhiUntil recently, a textile firm with more than 300 workers could not shut down its plant without government approval. Labour laws actually required a 30- to 90-day notice period to carry out any such action. A regulatory regime like that meant that India’s textile firms chose to stay small and to employ fewer workers.India once had high hopes from manufacturing. It was supposed to be the mainstay of employment for the country. And

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