The Indian industry has to deal with 44 different labour related regulations. The national manufacturing competitiveness council or NMCC has called for abolishing all these legislations. NMCC chief VK Krishnamurthy has written to labour minister Oscar Fernandez, demanding one comprehensive legislation related to labour laws.
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NMCC knows that the government is going to change in the next couple of months but it is very clear that the new government will have to take a political call on labour reforms by abolishing the 44 prevalent labour related laws and compressing them into just one comprehensive legislation by weeding out archaic and outdated provisions of several of these legislations.
The reason is NMCC has estimated that in the next 5 years 100 million jobs will come out of China and India has the potential to get 40-80 million of those jobs and that can only happen if labour reforms are carried out in India. According to NMCC we do not have much time, this has to be done in the next 2-3 years or else all these jobs from China will either go to South East Asian countries like Vietnam or Cambodia or even Bangladesh which has overtaken us in a sectors like textile and apparel.
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