arvind panagariya: India should ease law on firing workers, says Arvind Panagariya

Economy


By Santosh Kumar


India should ease norms for hiring and firing workers to make it easier for companies to do business in the country, according to a former adviser to Prime Minister Narendra Modi’s government.

Easing the rules are crucial for employers, as their primary aim is not to fire workers, Arvind Panagariya, the former head of government think-tank NITI Aayog, said in an interview in New Delhi. “You need consistency across labor laws.”

Finance Minister Nirmala Sitharaman, in her maiden budget this month, proposed combining multiple laws governing workers to form four sets of labor codes to improve the ease of doing business. But what’s needed is the reform of labor laws and not just streamlining of existing ones, said Panagariya.

Loading...

What’s Keeping Investors Away

He said the government’s plan to introduce a single minimum wage across the country may hurt businesses in smaller towns considering the wide differences in costs across urban and rural India. It could especially hurt small exporters and erode their competitiveness globally.

Modi’s government, which was re-elected for a second straight five year term in May, can do more to help grow the economy, Panagariya said, adding that some of India’s labor laws are probably more than 100 years old. Almost all of them are more than 30 years old.



Source link

Articles You May Like

Stocks just got some new competition from bonds as 10-year rate tops dividend yield
PPP loan rules and priority window excites and confuses small firms
Airbnb (ABNB) earnings Q4 2020
China’s foreign minister calls for U.S. to remove tariffs sanctions
Goldman Sachs CEO Solomon calls working from home an ‘aberration’

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading...