Labour market reforms may boost FDI: UBS
29/09/2014 00:08
According to Swiss banking and financial major UBS, key labour market reforms including allowing flexibility in labour laws may go a long way in boosting foreign investment in the manufacturing sector of Asia’s third biggest economy, giving a boost to Prime Minister Narendra Modi’s ‘Make in India’ drive which seeks to make India a global manufacturing hub. UBS has called on Indian policymakers to allow formal flexibility in labour laws besides ensuring an improved compliance regime, factors that may help woo foreign investors to set up shop in India. Simplifying compliance and processes in the labour market may help the government achieve the ‘ease of doing business’ objective, which has been a major impediment for Indian businesses over the years. "Labour costs are low in India, compared to China. Lack of reliable infrastructure (energy or transport) is arguably a more inhibiting factor for growth of manufacturing in India, including for exports. Besides competitiveness, reliability is a key metricto become a successful and meaningful part of any global supply chain, UBS added. “Formal flexibility in labour laws and improved or simpler compliance regime will definitely help attract new Foreign Direct Investment (FDI), especially in export-oriented manufacturing," it said. UBS urged flexibility in the women employment process while easing restrictions on firings. India’s labour laws at present have been termed ‘regressive’.
29/09/2014 00:08
According to Swiss banking and financial major UBS, key labour market reforms including allowing flexibility in labour laws may go a long way in boosting foreign investment in the manufacturing sector of Asia’s third biggest economy, giving a boost to Prime Minister Narendra Modi’s ‘Make in India’ drive which seeks to make India a global manufacturing hub. UBS has called on Indian policymakers to allow formal flexibility in labour laws besides ensuring an improved compliance regime, factors that may help woo foreign investors to set up shop in India. Simplifying compliance and processes in the labour market may help the government achieve the ‘ease of doing business’ objective, which has been a major impediment for Indian businesses over the years. "Labour costs are low in India, compared to China. Lack of reliable infrastructure (energy or transport) is arguably a more inhibiting factor for growth of manufacturing in India, including for exports. Besides competitiveness, reliability is a key metricto become a successful and meaningful part of any global supply chain, UBS added. “Formal flexibility in labour laws and improved or simpler compliance regime will definitely help attract new Foreign Direct Investment (FDI), especially in export-oriented manufacturing," it said. UBS urged flexibility in the women employment process while easing restrictions on firings. India’s labour laws at present have been termed ‘regressive’.
