G20 hails India’s labour reforms, start-up policy
- Acknowledging the steps being taken by India for sustainable and inclusive growth as well as support to global economy, the G20 has praised the initiatives in the country for promoting ease of doing business, start-up funding and labour reforms.
Areas where improvement need for ease of doing business
- The areas where India ranks poorly as per the World Bank ranking include starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Partners to the G20
- Global institutions like the World Bank, IMF, WTO, OECD, ILO, WHO and the Financial Stability Board (FSB) are among the partners to the G20.
G20 Hamburg Action Plan
- 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.
- In the action plan, the G20 members resolved that they would continue to use all policy tools — monetary, fiscal and structural — individually and collectively to achieve the goal of strong, sustainable, balanced and inclusive growth, while enhancing economic and financial resilience.
Challenges to global growth
- Weak productivity growth, income inequality and ageing populations represent challenges to growth in the longer term.
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.