INDIAN LABOUR LAW REFORMS AND INDUSTRIUL GROWTH

As, today is the International Labour Day ,which is celebrated over the United States on the first Monday of September as holiday dedicated to the social and economic achievements of the workers, while in other parts of the world on the 1st of May, interpreted as the International Workers Day. We know that, till the time, the NDA government has assumed the power in the centre, there is a large chunk of economists, such as Arvind Pangariya ,Ruchir Sharma and many more, have suggested to the government that Indian Labour laws need the great reforms ,if it wants to achieve the high growth as for as industry and manufacturing sector is concern.
It is well invited by the prime minister of India Mr.Narendra Modi in his 15th august independence day speech, “come and make in India” and proposed the labour reforms very soon in the country. But the need of the hour is that, with these many archaic labour laws, is it possible to achieve such a manufacturing friendly environment in India? The tempting answer can be ,not. How these reforms in Indian labour laws are going to benefit the country and manufacturing industry is the topic of big debate.
The Rajasthan and Haryana government have recently proposed to amend some Central Labour Laws. The Ministry of Labour and Employment has also circulated labour reform proposals. The Department of Industrial Policy and Promotion has issued an “advisory” to the state governments to institute reforms relating to inspection.
Labour flexibility measures, especially in respect of hire and fire and contract labour, have caused industrial unrest and violence. Every company hesitates to form or establish any industry or firm in India , cause of stringent labour laws of the country. There are many trade unions within the companies those use to create time to time many troubles to companies at the minor disputes of few workers. Those need to be change, if we want to emerge as the manufacturing hub in the world or we will still remain dependent on Chaina for millions of imports of goods and products.
The proposals by the government are mainly in three laws known as the Factory Act 1948, Apprentice Act 1961 and the Labour Law Act 1988 in which the main provisions are, the over time working hours will be increased from 50 hours to 100 hours , the women work force will be allowed to do night shifts in factories, the Trade Union formation will require the 30% consensus of total workers to form , company would be authorised to fire the 300 workers increased from 100 and many more.
If the reforms as has been proposed, will be implemented, the more companies and manufacturing giants will be attracted to invest in the country and thus , the more employment will generated. The more productivity will increase, which will definitely be going to transform the industrial and manufacturing growth of the country. And we will emerge as the quality product exporter to the rest of the world. But requirement will be only to implement these laws and regulations effectively, by which it will not happen at the vast stake of poor and hardworking workers.

By Abhinav Shukla & Ashutosh Rai
MBA-IT
IIIT Allahabad