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Rigid Labor Regulations Hurt Labor in India



(p. A9) . . . rigid and complex regulations have discouraged investment in labor-intensive industries in India, . . . .

Many economists say India's labor laws have encouraged enterprises to stay small, rely on informal labor or substitute capital for workers. A report by the Paris-based Organization for Economic Cooperation and Development said for India to return to a high-growth trajectory, it must "reduce barriers to formal employment by introducing a simpler and more flexible labor law which doesn't discriminate by size of enterprise."



For the full story, see:

NIHARIKA MANDHANA. "India State Tests Labor-Law Overhaul." The Wall Street Journal (Sat., Dec. 6, 2014): A9.

(Note: ellipses added.)

(Note: the online version of the article has the date Dec. 7 [sic], 2014, and has the title "Modi's BJP-Controlled States Become Labs for Contentious Reform.")






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