Indian minister appeals to unions not to block labor reform

Indian Finance Minister Arun Jaitley Monday said there would be a threat to job creation if investments were blocked because of lack of labor reform in the country.

At a nationwide conference on labor reform, Jaitley also appealed to the country's powerful labor unions not to stick to old ideas that could jeopardize economic development.

A ministerial panel headed by the finance minister failed to break deadlock over proposed labor reforms because of stiff opposition from the unions which is planning a nationwide strike later this week.

"If we stop the fountain of investment, then employment will not increase, then economic activity will also not increase. And it becomes a threat to existing jobs," he said.

The Bharatiya Janata Party government under Prime Minister Narendra Modi plans reform of labor laws to make it easier for companies to do business in India.

The government said higher growth rates would protect labor and industry both.

"Sluggish industry will never be able to create jobs, it is only efficient industry which will be able to create jobs," said the minister.

India's manufacturing sector has remained sluggish for a long time mainly due to lack of enough investment. Endi