Flexibility of Labor Laws is the Key to Attracting More FDI

Jan 17 • Group Discussion • 8084 Views • 27 Comments on Flexibility of Labor Laws is the Key to Attracting More FDI

Flexibility of Labor Laws is the Key to Attracting More Foreign Direct Investment

Foreign Direct investment a great conversation topic for the last academic year. It was till the announcement from the central government. “India will allow Foreign direct investment’. We would have heard this in television group discussion and also in the parliamentary news.

Foreign Direct Investment

Foreign Direct Investment

The topic was –  we need Foreign direct investment?

If we allow will it affect the small scale business?

But finally government had announced FOREIGN DIRECT INVESTMENT will enter India

China is a great threat to India? Not in the defense in the economy. We have only 0.8% of the foreign direct investment. China has 30% of the foreign Direct Investment. So their economy is increasing high. We dint get this because of the government. They restricted the low of FOREIGN DIRECT INVESTMENT in India. Now it’s granted but still Foreign Direct investment is not showing interest in India?


Group Discussion

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India has more youngsters than other country. The reason is simple because of the labor laws in India. Fact is the management can’t make him jobless even if he is not working properly. This is the major problem in many industries. If they work for 10 year and got settle in their life. After that they lack in their work. Because of the years experience and by their friends they start union in the industry. This leads to many problems as they say just asking for their basic needs.

Most of the FOREIGN DIRECT INVESTMENT relates to. industries like cars, textiles, cement, rubber products, ceramics, and power equipments. This is more dangerous to human life. Life security and voluntary retirement is also a problem for them.

If the FOREIGN DIRECT INVESTMENT comes in there will be more temporary workers and contract labor. This gives no assurance to their future life.Our labor laws don’t support this. So Flexibility of labor laws is the key to attracting more Foreign Direct Investment.

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27 Responses to Flexibility of Labor Laws is the Key to Attracting More FDI

  1. Anonymous says:
  2. Debanki Mukherjee says:

    According to economists labor market regulation and standards decrease FDI inflows through the cost channel,but they increase FDI inflows through the productivity channel.Allowing for a nonlinear relationship between different indicators of labor market flexibility and FDI inflows revealed that some degree of labor market standards and regulations may be attractive for foreign investors.

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