To give a boost to the labour-intensive textile sector, a high-level expert panel constituted by the Commerce Ministry has recommended a review of free-trade pacts with countries such as Bangladesh that have zero-duty access to the Indian market, amendment of labour laws to allow flexibility in hiring and firing and fast-track disbursal of subsidies for technology upgradation.
“Modify labour laws (such as the Industrial Disputes Act, 1947) to remove limitation on firm size and allow manufacturing firms to grow,” the 12-member panel headed by economist Surjit Bhalla recommended in its report submitted to the government last week.
The textile industry, which is the second highest job generator after agriculture and directly employing about 45 million people, has been demanding removal of rigid labour laws that hurt operations. The bone of contention has been the law prescribing that any firm employing 100 or more workers has to seek permission from the Labour Department, with jurisdiction over the firm, before any layoffs or retrenchment.
Source: The Hindu BusinessLine
