News >> >>
World Bank criticizes IndiaÂ’s labor laws
By agencies
|
Wednesday, 21 September 2005, 19:30 IST
NEW DELHI: The World Bank has criticized IndiaÂ’s labor law but has praised India for its rapid economic growth.
It also criticized the countryÂ’s caste system, gender equity and capital market imperfections that was increasing the inequality.
"The best available estimates suggest that inequality in India has been rising, but with no solid assessment of by how much," the World Development Report, titled Equity and Development, said.
Urging India to reform labor laws, the report said, "Poorly designed or inappropriate government intervention can also be inefficient and bad for long-term growth."
Speaking about Industrial Disputes Act of 1947, it said "States that amended the legislation in the direction of reinforcing security rights of workers and other pro-labor measures had lower output and productivity growth in manufacturing sector than those who did not change it or made it more flexible."
"Relatively protective legislation may have reduced opportunities for workers -- especially the majority without a formal sector job," it said.