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Industry’s inability to invest is reason behind low job creation: NITI Aayog

Diapproving the thought that rigid labour laws are the reasons behind the slow growth of Indian industries, the NITI Aayog says, industry’s inability to invest in labour intensive sectors is the real reason behind the low job creation.

“The major impediment in job creation is that our entrepreneurs simply do not invest in labour intensive activities,” said Arvind Panagariya the Vice Chairman of NITI Aayog on Thrusday at the “three Year Action Agenda 2017-2020” release.

State with the “most progressive labour laws” like Gujarat had also witnessed no big change in this area.

Corporate leaders present on the ocassion were asked by M. Sathiyavathy, the Union Labour Secretary about what other liberalisation in labour laws the Indian industry wanted to invest in job intensive sectors.

“Where labour is a concurrent subject, and states are progressively liberalising labour laws, we cannot understand what more industry is seeking from the Centre in the way of relaxing on labour regulations,” Sathiyavathy said.

Substantial expansion in public spending on education, health, agriculture, rural development, defence, railways and roads by 2019-20 is proposed in the three-year action agenda. The action agenda also proposed the linking of central government expenditures to future priorities. It also suggested to shift the composition of expenditures by allocating a larger proportion of additional revenues that become available over time to high-priority sectors.

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