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Investment panel seeks flexible labor laws
By agencies
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Thursday, 02 March 2006, 20:30 IST |
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NEW DELHI: India should make its labor laws more flexible and lower entry barriers for foreign and private Indian firms in non-strategic sectors to attract more investment, a panel set up by the Prime Minister said today.
The Panel headed by Ratan Tata, chief of the Tata group, was set up by Prime Minister Manmohan Singh last year to advise the government how to step up the rate of investment in India.
It said in a report sent to the Prime Minister, the government should create a special high-level fast-track entity for approving priority sector projects and cut down red tape.
It also urged the government to upgrade urban infrastructure and appoint mayors in key cities, along the lines of major cities in the U.S. and China, to push through infrastructure projects.
India wants to boost the inflow of foreign direct investment to $10 billion in 2006, up from last year's $6 billion.
Legislation to liberalize India's archaic labor laws has been pending for three years due to opposition from far left parties and trade unions.
Indian companies say a lack of flexibility on labor issues makes them uncompetitive and they want legislation to make it easier to hire and fire employees and restructure in tough times.