AIAI’s views on Labour Reforms

Mr. Vijay Kalantri, President, All India Association of Industries (AIAI) welcomed the Hon’ble Prime Minister  Mr. Narendra Modi’s initiative on Labour Reforms by introducing the Single Window Clearance on Labour Laws. The “Shrameva Jayate programme”  initiative, this  will  certainly bring in the much required transparency and  will avoid harassment delays and  unfair practices in employment.

Mr. Kalantri further mentioned that this programme will ease the burden  on employers of various compliance documentation  demanded by the Labour inspectors and will simplify employment rules. The Archaic labour laws  and Inspector Raj which strictly regulated hiring and firing and inundated employers with paperwork, discouraged specially the SMEs from expanding and taking on new staff.

This change will surely benefit small firms and SMEs which employ few employees and usually do not have a huge staff for specifically taking care of labour compliances. The launch of this scheme will obliterate the   bottle necks in implementation of projects and will give impetus to growth and employment since nearly 84% of India’s Labour force is employed by the SMEs

AIAI feels the SMES sector is specially benefitted with doing away with Inspector Raj and this in the true sense Minimum Government Better Governance.


October 17, 2014