National Current Affairs – UPSC / IAS – 10th July 2017

G20 hails India’s labour reforms

G20 BSCS

  • On steps being taken by G20 countries for promoting inclusive growth this year, the Action Plan said India is introducing labour market reforms to provide security to workers, increase female participation in the workforce and make doing business easier in the country.
  • The acknowledgement from the G20 Summit, which was attended by Prime Minister Narendra Modi among other world leaders, assumes significance in the wake of India trying hard to improve its global ranking for ease of doing business.
  • The World Bank ranked the country at a low 130th position last year, an improvement of just one position from the previous year.
  • The Modi government has said it wants India to be ranked in the top-50 nations in terms of ease of doing business. The next update to the ranking is expected later this year.
  • 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.
  • The country has implemented a spate of reforms in the recent months in areas like insolvency, taxation and starting a business and expects the rankings to improve substantially.
  • The acknowledgement of various reform measures by G20, whose members include 19 countries and the European Union, has come as the latest boost to hopes for better ranking for India in terms of ease of doing business.
  • Global institutions like the World Bank, IMF, WTO, OECD, ILO, WHO and the Financial Stability Board (FSB) are among the partners to the G20.
  • 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.
  • It included new policy actions to tackle challenges in economies, focusing on initiatives that foster inclusive growth, enhancing resilience and further the G20 efforts to implement structural reforms.
  • 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.