India unveils efforts to revamp labour laws
October 16, 2014, 8:17 am

Indian Prime Minister Narendra Modi (fourth from right) unveiling labour reform initiatives in New Delhi, India on 16th September 2014 [MIB, india]

In the national capital, Indian Prime Minister Narendra Modi rolled out a number of schemes which includes single window portal to enable doing business with labour ministry, portability through universal account number for employee provident fund, and a revamped labour inspection scheme for companies.

India’s archaic labour laws, some of which date back to 1923 when the country was a British colony, are seen as an impediment to manufacturing.

While so far the units for inspection were selected locally without any objective criteria, the new scheme envisages that serious matters will be covered under the mandatory inspection list. This essentially means India’s labour inspectors will lose their discretionary powers.

“We have replaced 16 forms (which factory owners had to fill) with one form, which is available online. Now computer draw will decide which inspector (labour) will go for inspection to which factory and he will have to upload his report online in 72 hours,” said Modi in New Delhi on Thursday.

Ease of business is important. It is essential for success of 'Make in India' : Shri @narendramodi

— PMO India (@PMOIndia) October 16, 2014

India has 44 federal labour laws and around 150 provincial government laws that regulate labour practices. Reforming these are central to the Indian government’s growth revival project.

Meanwhile, India’s trade unions said last month they will oppose the government’s economic reforms programme to liberalize labour laws.

“This is the prelude to a bigger battle with the government to protect workers,” said Gurudas Dasgupta, a parliamentarian of the Communist Party of India (CPI) and general secretary of the All India Trade Union Congress (AITUC).

TBP and Agencies