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11 NOV,2019 | MEDC
Analysis of the Annual Survey of Industries (ASI) data shows that India’s workforce productivity has fallen significantly over the past eight years. Of course, the global economy itself isn’t in a good shape and so cannot be a supporting factor, but a fair amount of this decline is also due to India’s complex labour laws that need urgent simplification. This needs to be done on a priority basis, especially after the cut in the corporate tax rates. Easing labour laws coupled with competitive tax rates will help boost foreign investment in the economy. Also, if India is to benefit from the disruption in the world economy due to the US-China trade conflict, these measures need to be implemented early. There is also no alternative to investing heavily in infrastructure development.
*Photo Credit: Google
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