Expectations of Foreign Investors in Terms of Labor Laws
Human Resource Management
Project Report on Expectations of Foreign Investors in terms of Labor Laws
India, like other countries worldwide, is experiencing the effects of globalization. In order to make conditions friendlier for investors, there is a need for adaptability. Labor legislation, such as the Indian Disputes Act and Contract Labor (Regulation and Abolition) Act, are now under debate, along with issues concerning special economic zones.
Submitted by: Introduction
There has been a steady expansion of foreign investment in recent decades.
The upward trend is particularly strong for less developed countries, signifying the increased importance for these countries of FDI, as well as the increased presence of multinational firms. Alongside the expansion of FDI have risen concerns regarding competition between countries or regions to attract FDI.
After adopting new economic policy by government of India in July 1991 many foreign investors came in the Indian economic scene because the government of India gave many incentives to the foreign investors. So it is clear that government opened the doors of Indian market to foreign investors.
With more companies operating internationally, the impact on various business functions and labour laws in India is becoming more pronounced. Globalization, and the need to attract foreign investment, inevitably leads to an attack on workers’ rights by diluting existing labour standards, as trans-national corporations concede to the demands of multinationals. This dilution of stringent labour standards and strong resistance to any strengthening of workers’ rights (which sometimes become an obstacle to competitiveness in the global economy) is becoming prevalent in India.
Since the beginning of the reforms in the early 1990s, there
Project Report on Expectations of Foreign Investors in terms of Labor Laws
India, like other countries worldwide, is experiencing the effects of globalization. In order to make conditions friendlier for investors, there is a need for adaptability. Labor legislation, such as the Indian Disputes Act and Contract Labor (Regulation and Abolition) Act, are now under debate, along with issues concerning special economic zones.
Submitted by: Introduction
There has been a steady expansion of foreign investment in recent decades.
The upward trend is particularly strong for less developed countries, signifying the increased importance for these countries of FDI, as well as the increased presence of multinational firms. Alongside the expansion of FDI have risen concerns regarding competition between countries or regions to attract FDI.
After adopting new economic policy by government of India in July 1991 many foreign investors came in the Indian economic scene because the government of India gave many incentives to the foreign investors. So it is clear that government opened the doors of Indian market to foreign investors.
With more companies operating internationally, the impact on various business functions and labour laws in India is becoming more pronounced. Globalization, and the need to attract foreign investment, inevitably leads to an attack on workers’ rights by diluting existing labour standards, as trans-national corporations concede to the demands of multinationals. This dilution of stringent labour standards and strong resistance to any strengthening of workers’ rights (which sometimes become an obstacle to competitiveness in the global economy) is becoming prevalent in India.
Since the beginning of the reforms in the early 1990s, there
Bibliography: Multinational Corporations’ role in improving labour standards in developing countries http://www.academia.edu Analysis of the effects of Foreign investors on India since Liberalization http://artsandscience.usask.ca Globalization and Labour Laws in India http://www.psalegal.com