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India Should Ease Law on Firing Workers, Ex-Modi Adviser Says

  • Single minimum wage may not work across India, says Panagariya
  • Reform should replace outdated labor laws, bring consistency
Rail Operations in Mumbai Ahead of Annual Joint Budget
Photographer: Dhiraj Singh/Bloomberg

India should ease norms for hiring and firing workers to make it easier for companies to do business in the country, according to a former adviser to Prime Minister Narendra Modi’s government.

Easing the rules are crucial for employers, as their primary aim is not to fire workers, Arvind Panagariya, the head of government think-tank NITI Aayog, said in an interview in New Delhi. “You need consistency across labor laws.”