A study on ‘Comparison on Labour Laws: Select Countries’ compiled by the Exim Bank and MCCI was launched recently. The bank’s CMD T C A Ranganathan stated that the book analyses the labour laws in 20 countries under 15 parameters. The parameters included regulations on collective bargaining and settlement of industrial disputes, contract labour and employment security based on termination, comparisons on conditions of work hours... India is way down on the list.
Globally India’s exports are very low and imports have risen drastically. Ranganathan pointed out that even though Indian companies managed profitability, they did not have a place in world market due to lack of technology. On the contrary, China made a mark in world market with their cost-effective products while other developed countries had an upper hand on technology. India is still struggling to find its place between these two.
Indian labour law was enacted during the colonial period and since then no drastic change has taken place on par with the change in labour behaviour.
All the parameters mentioned above must have a change in accordance with present trend. Only six states, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh and Tamil Nadu were found to be both employer and employee-friendly in India.
India also ranked 82 in the Global Competitiveness Report by World Economic Forum and the reasons cited for this downfall were hiring and firing practice alongside restrictive labour regulations in India.
With 487 million people coming under the labour sector and a change provoking study done by the EXIM bank team, changes in these laws will lead India to be competitive in global market.