Labour law reforms give Rajasthan competitive edge

The event is part of a series of domestic and international roadshows, which were earlier held in Germany, Japan, Hyderabad, Chennai and Kolkata

By: Express News Service | Mumbai | Published: May 6, 2015 2:31 am
Vasundhara Raje, Rajasthan government, Central labour laws, labour reforms, Raje Cabinet, Industrial Disputes Act, Contract Labour Act , Factories Act Rajasthan Chief Minister Vasundhara Raje (second from left) at an investors’ meet in Mumbai on Tuesday.(Express Photo by: Vasant Prabhu)

In line with Prime Minister Narendra Modi’s ‘Make in India’ campaign, Rajasthan Chief Minister Vasundhara Raje on Tuesday said that her government will extend all help to create a conducive atmosphere to bring in investments and set up industries in the state.

“Make in India has become a big buzz word today. Every state is competing with each other to bring investments in because we have recognised the fact that if there are investments, the state will grow, employability will increase and there will be all round prosperity despite whatever else we are doing,” said Raje while speaking at an investors meet organised by the Rajasthan government in association with the Confederation of Indian Industry (CII) in Mumbai.

The event is part of a series of domestic and international roadshows, which were earlier held in Germany, Japan, Hyderabad, Chennai and Kolkata.

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Raje said policy reforms such as the introduction of the Industrial Disputes Act 1947, The Factories Act, The Contract Labour Regulation Abolition Act has given Rajasthan a competitive edge over other states. Raje also invited investors to the Resurgent Rajasthan Partnership Summit 2015, to be held in Jaipur on November 19-20 this year. The state government expects a significant surge in investor interest and definite commitments to invest through this summit.

“In the policy formulation, simplification area which is basically ease of doing busniess, we have looked at 86 amendments. Out of these amendments we have managed to carry out 64 in time and 14 more will be completed in the next one month. So we are working really hard on it,” said Raje.

The Rajasthan government, according to Raje is also looking at setting up model schools and medical colleges and hospitals in the state based on public private partnerships (PPP) model. “In the PPP model, land, building and teachers will be provided by the government and the business of teaching and running the school will be done by companies,” said Raje.

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  1. Hemen Parekh
    Jun 30, 2015 at 5:46 pm
    Hire , when you need : Fire , when you don't ! What is the amount of investment required to create 1 Million jobs per month ? ( = No of jobseekers joining India's labour market each month ) That would depend upon the " Industry " for investment There are some , " Capital Intensive " industries which would require a huge investment , whereas , there are some " Labour Intensive " industries , where a much smaller investment can generate 1 Million jobs For example , to generate 1 Million jobs would need : * Industrial Instruments ( Labour Intensive )................... Rs 10,000 Cr * Boilers / Steam Generating Plants ( Capital Intensive )... Rs 500,000 Cr { Source : DIPP , Investment and Job Creation from Aug 1991-Mar 2014 as reported in Times of India / 17 March , 2015 } Of course , we don't have to create all of those 1 Million jobs per month , in just one or two industries If we take an " Average Investment " required across ALL the industries , then , may be , we need : Rs 200,000 Cr to generate 1 Million jobs every month ie : Rs 2 Lakh*Crores per month ie : Rs 24 Lakh*Crores every year Now , who has got that kind of money to invest , even if we ume that > there is a " Ready Market " for all of those products , here and now ? > this market will not shrink in the foreseeable future ? Obviously , the Governments ( Central States ) , don't ! If we include FDI , may be Private Sector can raise that kind of money But will it invest in " Capital Intensive " industries or in " Labour Intensive " industries ? Given the current labour laws , it is clear that the investors will choose to invest in Capital Intensive industries Even if that means , creation of only 1 Lakh jobs instead of 10 Lakh jobs ! At this point , it is worth researching whether USA succeeds in creating some 150,000 / 200,000 new jobs every month , due to its policy of : " Hire when you need : Fire when you don't " Before hiring , do USA industrialists ask of themselves : " If things go wrong and I am forced to trim my work-force , will this recruit become a permanent burden ? " -------------------------------------------------------------------------- hemen parekh June 30 , 2015 B2BmessageBlaster