Bharat Jhunjhunwala
Many State Governments have decided to either dilute or to freeze labour laws for three years. Such steps, though necessary, will alone not revive the economy. The businessperson takes a decision to invest after considering a host of factors such as infrastructure, rule of law, enforcement of contracts, corruption, availability of loans, demand in the market, competition from imports, etc. Labour laws are but one of these many considerations. For this reason mere dilution of labour laws may not beget economic growth. No wonder, the relaxation of labour laws in Canada led to a reduction in employment; […]
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