A hire-and-fire policy on labour is required in textiles to realise its full export potential, an expert panel has suggested. The commerce ministry panel has also proposed a review of the trade pact with Bangladesh that allows duty free access of items from the neighbouring country, which limits the operations of Indian textiles players. The industry needs to adjust its operations to the rise and fall of demand and to scale down or scale up operations as the situation warrants, necessitating a freedom to retrench or hire labour. “Modify labour laws (such as the Industrial Disputes Act, 1947) to remove limitation on firm size and allow manufacturing firms to grow,” according to the high-level panel, headed by economist Surjit S. Bhalla.
