The Hindu Business Line : FICCI survey sees need for flexible labour laws

A FEDERATION of Indian Chambers of Commerce and Industry (FICCI) survey on manufacturing competitiveness has identified flexibility in labour laws and improvement in infrastructure facilities as the two issues of top-most priority that the Indian industry would like the proposed National Manufacturing Competitiveness Council (NMCC) to take up.

The survey was conducted during the months of July-August 2004 and elicited response from 364 companies across sectors. The turnover of the companies that participated in this survey ranged from Rs 1 crore to Rs 60,000 crore.

Almost 62 per cent of the participating companies included labour and infrastructure in their priority areas for enhancing competitiveness of the Indian industry. Other important issues, which the industry would like the proposed NMCC to take up, include rationalisation of commodity taxes, and creation of a mechanism for smooth exit and restructuring of sick and unviable units.

Strengthening linkages between industry and vocational training institutions for producing technicians of world standard attracted response from 24 per cent of the respondents.

Among other issues, strengthening and revitalisation of the development financial institutions (DFIs) and addressing cross subsidisation by industrial users for other user groups in power consumption found a mention. SSI reservation policy was included by a small 7 per cent of the respondents as one of their three recommendations for the NMCC.

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