India Ranks Poorly In Labour-Employer Relation: Morgan Stanley

MUMBAI: India ranks poorly in employee- employer relations standing at 61st position, which is far behind countries like Mexico, Thailand and the Philippines, according to a report by Morgan Stanley.

"On the metric of cooperation in labour-employer relations India ranks at 61, behind Mexico (44), Thailand (37) and the Philippines (34)," according to the report titled 'What's Holding Back India's Labour Market Environment? Part II' by Morgan Stanley.

China is just ranked ahead of India in this regard at the 60th spot, it said.

India's demographic trend is likely to be one of the best among large countries in the world, however, the country's track record of converting this development into an opportunity is mixed so far, the report said.

The country's track record in terms of creating productive jobs has been slow so far.

"One of the key issues stifling productive job growth is labour market regulations in the country apart from other factors such as inadequate physical infrastructure," it said.

The most contentious issue with regard to labour regulation in India is flexibility to lay off workers if a firm employs more than 100 workers, because it needs to notify and take permission from the concerned government administration, it pointed out.