Vasundhara Raje's Rajasthan government shows way in labour reforms

Jun 08 2014, 06:05 IST
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I had promised 15 lakh jobs and this is one area which desperately needs to be opened up. (Photo: Reuters) I had promised 15 lakh jobs and this is one area which desperately needs to be opened up. (Photo: Reuters)
SummaryRaje-led govt clears amendments to Industrial Disputes Act, Contract Labour Act, Factories Act

law provided they receive the President’s assent.

“As Gujarat Chief Minister, Modi has himself complained in the past that the Central government was sitting on many of the changes proposed by his state,” said Shourie. “Such changes to laws can be brought about in a variety of issues and this will ‘unfreeze’ policy environment,” he added.

In the past, Modi has accused the Centre of adopting a policy of “coercive federalism” and pushing states to a subordinate position by monopolising all powers of financial allocations, reducing even the constitutional rights of states. Rajasthan’s bid to reform labour laws will be a test case for the Centre and will set the direction for all 29 states which plan to bring about progressive changes to issues that are part of the concurrent list.

When asked if having the same political party at the Centre would help Rajasthan in obtaining the President’s assent, Mehrishi said, “The Central government is equally keen to create jobs. All industry associations have been saying for decades that labour law changes are a must for creating more employment opportunities.”

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