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Reforms in Labour Law India
Reforms in Labour Law India
Reforms in Labour Law India
Vs
Unorganized Workers
State intervention is often equated with implementation of laws
on industrial relations, but this is an oversimplification.
Rajasthan has done the same for IT, IT-enabled services and
biotechnology.
These encourage
corruption and rent-seeking. This is especially damaging for the
small self-employed
entrepreneur, who lacks scale economies to deal with a plethora
of rules and inspectors.
The institutional setting of the labour market characterized by
excessive regulation has adversely affected employment
growth in the sector.
Some laws, statutory and administrative, and reform initiatives, are
within the province of the Centre.
First, the decline in employment took place not in the organized private
sector but in public sector which was caused by factors like need to
downsize the government, increase in efficiency in public enterprises
and privatization, and not because of labour regulation.
Second, output growth accelerated during this period which implies that
the enterprises did not stop expanding.