Restrictive Labour Regulations
The labour regulations that exist in India today are among the most restrictive and complex in the world as they only protect the insiders – a small number of workers who are already working in the organized sector – while hampering the creation of manufacturing jobs. There are tens of millions of Indians that are either unemployed or working in poor quality jobs that would benefit from a job in manufacturing. In India, there are at least four times as many unemployed people (approximately 35 million) than there are employed people in the organized private sector. This is challenging for India as they must design labour regulations which will attract more labour intensive investment, especially in the manufacturing sector. India’s reforms should protect the interests of all workers by ensuring that the workers’ legitimate interests are being met in the workplace. A vast majority of workers in the unorganized sector face the hardships of being hired and then immediately fired. This is a regime that the World Bank does not advocate.
Link(s):
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPMA
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Link(s):
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPMA
CECOGRO/0,,contentMDK:20592481~menuPK:579404~pagePK:34004173~piPK:34003707~theSitePK:579398,
00.html