News: IMF urges India to reform labour laws

(RTR 20/04/2006) Washington - Stressing that India is not only growing rapidly but has also taken steps to improve its infrastructure, the International Monetary Fund (IMF) has urged for quick reform of labour laws if jobs are to be created in labour-intensive sectors.

"India, too, is growing rapidly and important steps are being taken to improve the infrastructure. Reform of the labour laws are urgently needed if jobs are to be created in labor-intensive sectors, and I note the Prime Minister supported this today," Economic Counsellor and Director of Research Department of the IMF, Raghuram Rajan, said yesterday.

Discussing the World Economic Outlook for the Spring meetings of the IMF and the World Bank, Rajan said India has to expand opportunities in higher education if it is to maintain competitiveness in the highly-skilled sectors.

The top IMF official called on China to move away from investment in net exports towards consumption. Various aspects of the Chinese economy are meriting a great deal of attention here as Chinese President Hu Jintao has arrived in the United States for his official visit.

China's trade surplus with the United States last year was nearly $202 billion.