Sunday, November 16, 2014

Leverage federal structure for critical reforms

           If at all any reform which the current dispensation at the centre will find it difficult to roll out it is Labour Reforms. The centre will have to bear tremendous labour pains while introducing such reforms. But one good thing which has happened is, individual state governments are ready to tweak the labour reforms in their respective states as per their political will and risk appetite. Fortunately, in case of Rajasthan, the president too has given assent to the bill and new labour laws are applicable in the state. India has a decisive and strong PM, but India too needs decisive and action oriented chief ministers. The centre is a mere facilitator, while the actual implementation happens at the state level. Here is a good read from livemint, on how the federal structure of the county can be exploited for such contentious issues. Based on the political appetite of the state, laws can be changed and implemented well. This approach will at least encourage half of the states in the country to go for a change and overhaul in their policies, for growth can be achieve only in coordination with the state governments....


                              Labor Laws reform at state level


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