The Hindu : Business : States may be allowed to frame own labour laws for export zones

Online edition of India's National Newspaper
Saturday, Aug 06, 2005

Business

Business

States may be allowed to frame own labour laws for export zones

Staff Reporter

`Will help attract investment in manufacturing sector'

EMPOWERING STATES: The President of Madras Chamber of Commerce and Industry, Murali Venkatraman (second from right), presenting a memento to the Union Minister for Commerce and Industry, Kamal Nath, in Chennai on Friday. Also seen are: the Minister of State for Commerce and Industry, E. V. K. S. Elangovan (extreme right), and the Alternate President, Assocham (extreme left), Anil K. Agarwal. — Photo: Bijoy Ghosh

CHENNAI: The Centre is considering a proposal to empower States to frame their own labour laws for industrial units located within certain demarcated areas such as the export zones and special economic zones, said Kamal Nath, Union Minister for Commerce and Industry.

The thinking of the Centre in this direction comes in the wake of proposals it has received from some States to "have their own labour laws," he told the 169th annual general meeting of the Madras Chamber of Commerce and Industry (MCCI) here on Friday.

Replying to queries from the floor after addressing the AGM, Mr. Nath said the demand of the States was indicative of the growing competition among them for attracting investments in the manufacturing sector. "The competitiveness among the States has to be driven," he said, pointing out that labour figured on the Concurrent list in the Constitution.

`I am on your side on FBT'

However, the proposed permission to the States should be construed as reform of the labour laws, as whatever they would be framing would be "new labour laws," the Minister added. To a plea from an industry representative for withdrawal of the fringe benefits tax, Mr. Nath said, "I am on your side ... will tell the Finance Minister again and also the Prime Minister."

He added, "While revenue is essential, we must find the least cumbersome way to do it (resource mobilisation) rather than a way" that brought with it a lot of paperwork.

He said non-tariff barriers (NTBs), would be central to global trade negotiations in the coming years. In view of possibility of the developed countries imposing more NTBs, the Ministry had recently advised trade and industry to make an inventory of such barriers to enable the government to take it up before the World Trade Organisation.

Printer friendly page
Send this article to Friends by E-Mail

Business