<p>The clamour for reforms in land and labour laws is finding increasing resonance in India, as the country handed an overwhelming mandate to Prime Minister Narendra Modi.</p>.<p>The corporate sector, which has increased its pitch for reforms in these two sensitive sectors, has found support from bureaucracy, thereby putting the Prime Minister in a tight spot. Any move to tinker with land and labour laws is not an easy task for Modi as it may make him unpopular among the working class.</p>.<p>"Going forward, we see potential reforms focusing on four key themes: land – transparent auctions, and digitisation of records; labour – creating an enabling regulatory environment; privatisation – in areas such as agriculture and banking; and export promotion – through targeting new export markets such as Eastern Europe and Central Asia; and creating a credible system of grading and certification," global investment banking behemoth Goldman Sachs said in a research note.</p>.<p>The corporates have long been against the Indian labour laws, as they see the current regulatory framework as a hindrance in achieving their desired bottom-line.</p>.<p>Yet another global advisory, UBS, seconded the opinion put forth by Goldman Sachs. "Major structural reforms on land, labour and privatisation will excite markets. Political capital is higher vis-à-vis 2014 but a majority in the upper house (Rajya Sabha) is unlikely by 2022," UBS said in its post-election note.</p>.<p>The requirement in the Industrial Disputes Act that no factory employing more than 100 workers can go for lay-offs without prior permission from the government -- which, according to the corporate point of view, leaves companies with no incentive to maintain anybody on the regular muster rolls.</p>.<p>Any tinkering to this law may cause furore among the working class in the country, many of whom are staunch supporters of PM Modi.</p>.<p>Earlier this week, Chief Economic Advisor, Krishnamurthy Subramanian, who is seen as close to PM Narendra Modi had also batted for the land reforms.</p>.<p>“These are areas where we need reforms,” Subramanian said in an interview to Bloomberg. The “2013 Act on land reforms had made it very costly to acquire land,” he said.</p>
<p>The clamour for reforms in land and labour laws is finding increasing resonance in India, as the country handed an overwhelming mandate to Prime Minister Narendra Modi.</p>.<p>The corporate sector, which has increased its pitch for reforms in these two sensitive sectors, has found support from bureaucracy, thereby putting the Prime Minister in a tight spot. Any move to tinker with land and labour laws is not an easy task for Modi as it may make him unpopular among the working class.</p>.<p>"Going forward, we see potential reforms focusing on four key themes: land – transparent auctions, and digitisation of records; labour – creating an enabling regulatory environment; privatisation – in areas such as agriculture and banking; and export promotion – through targeting new export markets such as Eastern Europe and Central Asia; and creating a credible system of grading and certification," global investment banking behemoth Goldman Sachs said in a research note.</p>.<p>The corporates have long been against the Indian labour laws, as they see the current regulatory framework as a hindrance in achieving their desired bottom-line.</p>.<p>Yet another global advisory, UBS, seconded the opinion put forth by Goldman Sachs. "Major structural reforms on land, labour and privatisation will excite markets. Political capital is higher vis-à-vis 2014 but a majority in the upper house (Rajya Sabha) is unlikely by 2022," UBS said in its post-election note.</p>.<p>The requirement in the Industrial Disputes Act that no factory employing more than 100 workers can go for lay-offs without prior permission from the government -- which, according to the corporate point of view, leaves companies with no incentive to maintain anybody on the regular muster rolls.</p>.<p>Any tinkering to this law may cause furore among the working class in the country, many of whom are staunch supporters of PM Modi.</p>.<p>Earlier this week, Chief Economic Advisor, Krishnamurthy Subramanian, who is seen as close to PM Narendra Modi had also batted for the land reforms.</p>.<p>“These are areas where we need reforms,” Subramanian said in an interview to Bloomberg. The “2013 Act on land reforms had made it very costly to acquire land,” he said.</p>