'States should use Rajasthan model on labour reforms'

Arvind Panagariya, vice-chairman of the Rajasthan chief minister's economic advisory council and one of the brains behind the state's labour laws, said on Thursday the state had shown the way for others to follow. "Rajasthan has shown the way for labour law reforms and to get growth back on track. More states need to reform their labour laws," Panagariya said at a Ficci function on Thursday. The Columbia University professor said labour laws make it difficult for many businessmen to set up shop in India, as the laws prove to be more of an obstacle than a facilitator.

According to him, the Indian economy is where China was almost 15 years ago. China took huge strides towards growth by encouraging manufacturing and labour intensive industries, he noted.

India could well replicate the success story of China with a series of reforms in policies such as labour laws and sectors such as infrastructure, power, land, agriculture, higher education and healthcare, Panagariya added.