G20 hails India’s labour reforms, start-up policy
Steps taken by India for sustainable and inclusive growth were acknowledged at G20 summit in Hamburg. These include initiatives for promoting ease of doing business, start-up funding and labour reforms.
The G20 Hamburg Action Plan, which sets out the group’s strategy for achieving strong, sustainable, balanced and inclusive growth, also said the closer partnership and action by G20 members will boost confidence and contribute to shared prosperity.
The G20 Hamburg Action Plan has been developed against the backdrop of:
- Improving growth and job prospects across the world. The global economic recovery is progressing and gaining momentum, investments has picked up and trade and manufacturing are showing signs of recovery
- But the pace of growth is lower than desired and downside risks remain. Weak productivity growth, income inequality and ageing populations represent challenges to growth in the longer term
- The G20 members resolved that they would continue to use all policy tools (monetary, fiscal and structural) both individually and collectively to achieve the goal of strong, sustainable, balanced and inclusive growth, while enhancing economic and financial resilience
Key reforms initiated by India:
- India is popularizing a number of derivative instruments in the financial sector, to enhance resilience of its economy
- India is also facilitating external commercial borrowings (ECBs) by start-ups to encourage innovation and promote ease of doing business. This is part of its efforts for maintaining momentum on structural reforms and sustainable growth
- India has also introduced labour reforms with the aim to boost workers’ security and increase female participation in workforce
The Indian government has indicated what it wants G20 to do more on:
- Creating a strong partnership among nations in skilling and up-skilling of the work force
- Encourage manpower mobility in a manner that it would help the host nation as well as the source nation
- Promote digitization with an aim to strengthen labour markets and to improve delivery of services.