WTO identifies unemployment as major problem for India

New Delhi, May 25 (UNI) World Trade Organisation has identified unemployment, underemployment and job creation among the major problems facing India even as the country has been growing at a rapid pace in recent years.

India's gross domestic product (GDP) grew by 9 and 9.2 per cent in 2005-06 and 2006-07, according to the economic survey figures.

The International Monetary Fund (IMF) has estimated that around 100 million new job seekers will enter the labour market over the next decade.

The world trade body, which concludes its three-day review of India's trade policy in Geneva today, is not sure whether the required jobs can be created without reform of India's labour laws.

Accepting that some piece meal changes have been made in labour laws in some states by allowing greater flexibility in labour policies in special economic zones, WTO, however, said more general reform in labour laws is needed.

But at the same time, the world trade body attributed flexibility in labour laws in India to the lack of a safety net. It said the national Common Minimum Programme of the Government acknowledges that some changes in labour laws may be required, provided they fully protect the interests of workers and their families and takes place after consultation with trade unions.

WTO took note of the Indian government's initiative in upgrading technical institutes to produce a multi-skilled workforce which could be absorbed by the rapidly growing services sector.

The Governmment is to launch a similar skill-development initiative with the participation of private sector with an objective of training five million workers in the first five years and a million workers per year thereafter.

UNI