Seen a lot of people aver the following, "but where are the jobs?" in response to someone asserting the need to incentivize the movement of our people from agriculture to industry.
Well, here's one major part of the big answer: Labour reforms.
Thread👇
I think people haven't fully realised the potential of inducing flexibility in labour laws and reducing the regulatory cholesterol that has tarred our system for decades.
Rajasthan State government introduced the labour reforms in 2014 wrt +
+ raising the threshold levels for applicability of different acts, dispute resolution etc. (Refer to images for a more detailed understanding of the reforms)
Based on this, the Economic survey of 2019 (Chapter 3) notes the following improvements in Rajasthan's MSME network:
1. India has a major problem of dwarf firms i.e. firms that remain small despite being old and are not able to employ more than 10-20 workers.
Well, after the reforms, Rajasthan has witnessed a significant rise in number of firms with more than 100 employees as compared to the rest of India. (refer graph)
2. The number of factories establishing with more than 100 workers were growing on an average of 3.65%, +