New Delhi, Nov 19: Policy changes are needed in India's labour legislations and the small scale sector, to check infiltration of labour intensive products from competing countries like China, an Assocham study has said. Pointing out, that the share of labour intensive products had declined from 42.9 per cent in 1991-92 to 32.2 per cent in 1997-98, the study said, the decline showed haphazard labour regulations, since it concentrated in the small scale sector.However, it added that this was not the only reason that pointed to the need for changes in the labour legislation and small scale sector.
"Unless reforms in these areas are accelerated, there is every possibility that cheaper labour intensive products from major competing countries like China, may flood the domestic market and erode the very base of such industries in the country," Assocham added.
On the declining trend of the manufacturing sector, it said, though the ratio of manufacturing sector to total gross domestic product (GDP), fell to 16.2 per cent in 2000 from 17.7 per cent in 1981, the sector had made significant improvements in ensuring greater access to foreign markets.
(PTI)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.